relating to taxation; property and local government; modifying provisions related
         <br/>
<a id="pl.1.3"></a><var>1.3</var>to property taxes; taxpayer empowerment; aids, credits, and refunds; in perpetuity
         <br/>
<a id="pl.1.4"></a><var>1.4</var>payments on land purchases; tax increment financing; local option sales taxes; <br/>
<a id="pl.1.5"></a><var>1.5</var>public finance; and miscellaneous tax provisions; modifying property tax <br/>
<a id="pl.1.6"></a><var>1.6</var>exemptions, classifications, and refunds; allowing a reverse referendum for property
         <br/>
<a id="pl.1.7"></a><var>1.7</var>tax levies under certain circumstances; establishing school building bond <br/>
<a id="pl.1.8"></a><var>1.8</var>agricultural tax credit; modifying state general levy; modifying certain local <br/>
<a id="pl.1.9"></a><var>1.9</var>government aids; authorizing certain tax increment financing authority; prohibiting
         <br/>
<a id="pl.1.10"></a><var>1.10</var>municipalities from taxing paper or plastic bags; modifying county levy authority;
         <br/>
<a id="pl.1.11"></a><var>1.11</var>authorizing certain local taxes; restricting rail project expenditures; modifying
         <br/>
<a id="pl.1.12"></a><var>1.12</var>provisions related to taconite; repealing political contribution refund; making <br/>
<a id="pl.1.13"></a><var>1.13</var>technical and conforming changes; requiring a report;amending Minnesota Statutes <br/>
<a id="pl.1.14"></a><var>1.14</var>2016, sections 40A.18, subdivision 2; 97A.056, subdivisions 1a, 3, by adding <br/>
<a id="pl.1.15"></a><var>1.15</var>subdivisions; 116P.02, subdivision 1, by adding subdivisions; 116P.08, subdivisions
         <br/>
<a id="pl.1.16"></a><var>1.16</var>1, 4; 123B.63, subdivision 3; 126C.17, subdivision 9; 127A.45, subdivisions 10, <br/>
<a id="pl.1.17"></a><var>1.17</var>13; 205.10, subdivision 1; 205A.05, subdivision 1; 216B.36; 216B.46; 237.19; <br/>
<a id="pl.1.18"></a><var>1.18</var>270A.03, subdivision 7; 272.02, subdivisions 23, 86, by adding a subdivision; <br/>
<a id="pl.1.19"></a><var>1.19</var>272.0213; 272.029, subdivision 2; 272.162; 273.124, subdivisions 3a, 14, 21; <br/>
<a id="pl.1.20"></a><var>1.20</var>273.125, subdivision 8; 273.13, subdivisions 22, 23, 25, 34; 273.1392; 273.1393; <br/>
<a id="pl.1.21"></a><var>1.21</var>275.025, subdivisions 1, 2, 4, by adding a subdivision; 275.065, subdivision 3; <br/>
<a id="pl.1.22"></a><var>1.22</var>275.066; 275.07, subdivisions 1, 2; 275.08, subdivision 1b; 275.60; 276.017, <br/>
<a id="pl.1.23"></a><var>1.23</var>subdivision 3; 276.04, subdivisions 1, 2; 279.01, subdivisions 1, 2, 3; 279.37, by
         <br/>
<a id="pl.1.24"></a><var>1.24</var>adding a subdivision; 281.17; 281.173, subdivision 2; 281.174, subdivision 3; <br/>
<a id="pl.1.25"></a><var>1.25</var>282.01, subdivisions 4, 6, by adding a subdivision; 282.016; 282.018, subdivision
         <br/>
<a id="pl.1.26"></a><var>1.26</var>1; 282.02; 282.241, subdivision 1; 282.322; 287.08; 289A.50, subdivision 1; <br/>
<a id="pl.1.27"></a><var>1.27</var>290.01, subdivision 6; 290A.03, subdivisions 11, 13; 298.225, subdivision 1; <br/>
<a id="pl.1.28"></a><var>1.28</var>298.28, subdivision 3; 366.095, subdivision 1; 383B.117, subdivision 2; 410.32; <br/>
<a id="pl.1.29"></a><var>1.29</var>412.221, subdivision 2; 412.301; 426.19, subdivision 2; 447.045, subdivisions 2, <br/>
<a id="pl.1.30"></a><var>1.30</var>3, 4, 6, 7; 452.11; 455.24; 455.29; 459.06, subdivision 1; 462.353, subdivision 4;
         <br/>
<a id="pl.1.31"></a><var>1.31</var>469.053, subdivision 5; 469.101, subdivision 1; 469.107, subdivision 2; 469.169, <br/>
<a id="pl.1.32"></a><var>1.32</var>by adding a subdivision; 469.174, subdivision 12; 469.175, subdivision 3; 469.176,
         <br/>
<a id="pl.1.33"></a><var>1.33</var>subdivision 4c; 469.1761, by adding a subdivision; 469.1763, subdivisions 1, 2, <br/>
<a id="pl.1.34"></a><var>1.34</var>3; 469.178, subdivision 7; 469.190, subdivisions 1, 5; 471.57, subdivision 3; <br/>
<a id="pl.1.35"></a><var>1.35</var>471.571, subdivision 3; 471.572, subdivisions 2, 4; 473.39, by adding subdivisions;
         <br/>
<a id="pl.1.36"></a><var>1.36</var>473H.09; 473H.17, subdivision 1a; 475.59; 475.60, subdivision 2; 477A.011, <br/>
<a id="pl.1.37"></a><var>1.37</var>subdivisions 34, 45; 477A.013, subdivisions 8, 9; 477A.10; 477A.11, by adding <br/>
<a id="pl.1.38"></a><var>1.38</var>subdivisions; 504B.285, subdivision 1; 504B.365, subdivision 3; Laws 1980, <br/>
<a id="pl.1.39"></a><var>1.39</var>chapter 511, sections 1, subdivision 2, as amended; 2, as amended; Laws 1991, <br/>
<a id="pl.2.1"></a><var>2.1</var>chapter 291, article 8, section 27, subdivisions 3, as amended, 4, as amended, 5;
         <br/>
<a id="pl.2.2"></a><var>2.2</var>Laws 1996, chapter 471, article 2, section 29, subdivisions 1, as amended, 4, as <br/>
<a id="pl.2.3"></a><var>2.3</var>amended; article 3, section 51; Laws 1999, chapter 243, article 4, sections 17, <br/>
<a id="pl.2.4"></a><var>2.4</var>subdivisions 3, 5, by adding a subdivision; 18, subdivision 1, as amended; Laws <br/>
<a id="pl.2.5"></a><var>2.5</var>2005, First Special Session chapter 3, article 5, section 38, subdivisions 2, as <br/>
<a id="pl.2.6"></a><var>2.6</var>amended, 4, as amended; Laws 2008, chapter 154, article 9, section 21, subdivision
         <br/>
<a id="pl.2.7"></a><var>2.7</var>2; Laws 2008, chapter 366, article 7, section 20; Laws 2009, chapter 88, article 5,
         <br/>
<a id="pl.2.8"></a><var>2.8</var>section 17, as amended; Laws 2014, chapter 308, article 6, sections 8, subdivision
         <br/>
<a id="pl.2.9"></a><var>2.9</var>1; 9; proposing coding for new law in Minnesota Statutes, chapters 11A; 16A; <br/>
<a id="pl.2.10"></a><var>2.10</var>16B; 103C; 116P; 117; 222; 273; 274; 275; 281; 416; 459; 471; 473; 477A; <br/>
<a id="pl.2.11"></a><var>2.11</var>repealing Minnesota Statutes 2016, sections 10A.322, subdivision 4; 13.4967, <br/>
<a id="pl.2.12"></a><var>2.12</var>subdivision 2; 205.10, subdivision 3; 270C.9901; 281.22; 290.06, subdivision 23; <br/>
<a id="pl.2.13"></a><var>2.13</var>477A.085; 477A.20; Minnesota Rules, part 4503.1400, subpart 4.<br/>
<a id="pl.2.14"></a><var>2.14</var>BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA:<br/>
<br/>
<a id="bill.1.0.0"></a>

<a id="bill.1.1.0"></a><a id="pl.2.17"></a><var>2.17</var>    Section 1. Minnesota Statutes 2016, section 40A.18, subdivision 2, is amended to read:<br/>
<a id="pl.2.18"></a><var>2.18</var>    Subd. 2. <b>Allowed commercial and industrial operations.</b> (a) Commercial and industrial <br/>
<a id="pl.2.19"></a><var>2.19</var>operations are not allowed on land within an agricultural preserve except:<br/>
<a id="pl.2.20"></a><var>2.20</var>(1) small on-farm commercial or industrial operations normally associated with and
         <br/>
<a id="pl.2.21"></a><var>2.21</var>important to farming in the agricultural preserve area;<br/>
<a id="pl.2.22"></a><var>2.22</var>(2) storage use of existing farm buildings that does not disrupt the integrity of
         the <br/>
<a id="pl.2.23"></a><var>2.23</var>agricultural preserve; and<br/>
<a id="pl.2.24"></a><var>2.24</var>(3) small commercial use of existing farm buildings for trades not disruptive to the
         <br/>
<a id="pl.2.25"></a><var>2.25</var>integrity of the agricultural preserve such as a carpentry shop, small scale mechanics
         shop, <br/>
<a id="pl.2.26"></a><var>2.26</var>and similar activities that a farm operator might conduct.; and<br/>
<a id="pl.2.27"></a><var>2.27</var>(4) wireless communication installments and related equipment and structure capable
         <br/>
<a id="pl.2.28"></a><var>2.28</var>of providing technology potentially beneficial to farming activities.<br/>
<a id="pl.2.29"></a><var>2.29</var>    (b) For purposes of paragraph (a), clauses (2) and (3), "existing" in clauses (2) and (3) <br/>
<a id="pl.2.30"></a><var>2.30</var>means existing on August 1, 1989.<br/>
<a id="pl.2.31"></a><var>2.31</var><b>EFFECTIVE DATE.</b>This section is effective the day following final enactment.<br/>
<br/>
<a id="bill.1.2.0"></a><a id="pl.2.32"></a><var>2.32</var>    Sec. 2. <b>[103C.333] COUNTY LEVY AUTHORITY.</b><br/>
<a id="pl.2.33"></a><var>2.33</var>Notwithstanding any other law to the contrary, a county levying a tax under section
         <br/>
<a id="pl.2.34"></a><var>2.34</var>103C.331 shall not include any taxes levied under those authorities in the levy certified
         <br/>
<a id="pl.2.35"></a><var>2.35</var>under section 275.07, subdivision 1, paragraph (a). A county levying under section
         103C.331 <br/>
<a id="pl.3.1"></a><var>3.1</var>shall separately certify that amount, and the auditor shall extend that levy as a
         special taxing <br/>
<a id="pl.3.2"></a><var>3.2</var>district levy under sections 275.066 and 275.07, subdivision 1, paragraph (b).<br/>
<a id="pl.3.3"></a><var>3.3</var><b>EFFECTIVE DATE.</b>This section is effective for certifications made in 2017 and <br/>
<a id="pl.3.4"></a><var>3.4</var>thereafter.<br/>
<br/>
<a id="bill.1.3.0"></a><a id="pl.3.5"></a><var>3.5</var>    Sec. 3. Minnesota Statutes 2016, section 272.02, subdivision 23, is amended to read:<br/>
<a id="pl.3.6"></a><var>3.6</var>    Subd. 23. <b>Secondary liquid </b><b>agricultural </b><b>chemical </b><b>containment </b><b>facilities</b><b>.</b> Secondary <br/>
<a id="pl.3.7"></a><var>3.7</var>containment tanks, cache basins, and that portion of the structure needed for the containment <br/>
<a id="pl.3.8"></a><var>3.8</var>facility used to confine agricultural chemicals as defined in section 
<statute_ref>18D.01, subdivision 3</statute_ref>, <br/>
<a id="pl.3.9"></a><var>3.9</var>as required by the commissioner of agriculture under chapter 18B or 18C, berms used by <br/>
<a id="pl.3.10"></a><var>3.10</var>a reseller to contain agricultural chemical spills from primary storage containers
         and prevent <br/>
<a id="pl.3.11"></a><var>3.11</var>runoff or leaching of liquid agricultural chemicals as defined in section 18D.01,
         subdivision <br/>
<a id="pl.3.12"></a><var>3.12</var>3, are exempt. For purposes of this subdivision, "reseller" means a person licensed by the <br/>
<a id="pl.3.13"></a><var>3.13</var>commissioner of agriculture under section 18B.316 or 18C.415.<br/>
<a id="pl.3.14"></a><var>3.14</var><b>EFFECTIVE DATE.</b>This section is effective beginning with taxes payable in 2016 <br/>
<a id="pl.3.15"></a><var>3.15</var>provided that nothing in this section shall cause property that was classified as
         exempt <br/>
<a id="pl.3.16"></a><var>3.16</var>property for taxes payable in 2016 to lose its exempt status for taxes payable in
         that year.<br/>
<br/>
<a id="bill.1.4.0"></a><a id="pl.3.17"></a><var>3.17</var>    Sec. 4. Minnesota Statutes 2016, section 272.02, subdivision 86, is amended to read:<br/>
<a id="pl.3.18"></a><var>3.18</var>    Subd. 86. <b>Apprenticeship training facilities.</b> All or a portion of a building used <br/>
<a id="pl.3.19"></a><var>3.19</var>exclusively for a state-approved apprenticeship program through the Department of
         Labor <br/>
<a id="pl.3.20"></a><var>3.20</var>and Industry is exempt if:<br/>
<a id="pl.3.21"></a><var>3.21</var>(1) it is owned by a nonprofit organization or a nonprofit trust, and operated by
         a nonprofit <br/>
<a id="pl.3.22"></a><var>3.22</var>organization or a nonprofit trust;<br/>
<a id="pl.3.23"></a><var>3.23</var>(2) the program participants receive no compensation; and<br/>
<a id="pl.3.24"></a><var>3.24</var>(3) it is located:<br/>
<a id="pl.3.25"></a><var>3.25</var>(i) in the Minneapolis and St. Paul standard metropolitan statistical area as determined
         <br/>
<a id="pl.3.26"></a><var>3.26</var>by the 2000 federal census;<br/>
<a id="pl.3.27"></a><var>3.27</var>(ii) in a city outside the Minneapolis and St. Paul standard metropolitan statistical
         area <br/>
<a id="pl.3.28"></a><var>3.28</var>that has a population of 7,400 or greater according to the most recent federal census;
         or<br/>
<a id="pl.3.29"></a><var>3.29</var>(iii) in a township that has a population greater than 2,000 1,400 but less than 3,000 <br/>
<a id="pl.3.30"></a><var>3.30</var>determined by the 2000 federal census and the building was previously used by a school
         <br/>
<a id="pl.3.31"></a><var>3.31</var>and was exempt for taxes payable in 2010.<br/>
<a id="pl.4.1"></a><var>4.1</var>Use of the property for advanced skills training of incumbent workers does not disqualify
         <br/>
<a id="pl.4.2"></a><var>4.2</var>the property for the exemption under this subdivision. This exemption includes up
         to five <br/>
<a id="pl.4.3"></a><var>4.3</var>acres of the land on which the building is located and associated parking areas on
         that land, <br/>
<a id="pl.4.4"></a><var>4.4</var>except that if the building meets the requirements of clause (3), item (iii), then
         the exemption <br/>
<a id="pl.4.5"></a><var>4.5</var>includes up to ten acres of land on which the building is located and associated parking
         <br/>
<a id="pl.4.6"></a><var>4.6</var>areas on that land. If a parking area associated with the facility is used for the
         purposes of <br/>
<a id="pl.4.7"></a><var>4.7</var>the facility and for other purposes, a portion of the parking area shall be exempt
         in proportion <br/>
<a id="pl.4.8"></a><var>4.8</var>to the square footage of the facility used for purposes of apprenticeship training.<br/>
<br/>
<a id="bill.1.5.0"></a><a id="pl.4.9"></a><var>4.9</var>    Sec. 5. Minnesota Statutes 2016, section 272.02, is amended by adding a subdivision to <br/>
<a id="pl.4.10"></a><var>4.10</var>read:<br/>
<a id="pl.4.11"></a><var>4.11</var>    Subd. 100. <b>Electric generation facility; personal property.</b> (a) Notwithstanding <br/>
<a id="pl.4.12"></a><var>4.12</var>subdivision 9, clause (a), attached machinery and other personal property that is
         part of an <br/>
<a id="pl.4.13"></a><var>4.13</var>electric generation facility with more than 35 megawatts and less than 40 megawatts
         of <br/>
<a id="pl.4.14"></a><var>4.14</var>installed capacity and that meets the requirements of this subdivision is exempt from
         taxation <br/>
<a id="pl.4.15"></a><var>4.15</var>and payments in lieu of taxation. The facility must:<br/>
<a id="pl.4.16"></a><var>4.16</var>(1) be designed to utilize natural gas as a primary fuel;<br/>
<a id="pl.4.17"></a><var>4.17</var>(2) be owned and operated by a municipal power agency as defined in section 453.52,
         <br/>
<a id="pl.4.18"></a><var>4.18</var>subdivision 8;<br/>
<a id="pl.4.19"></a><var>4.19</var>(3) be located within 800 feet of an existing natural gas pipeline;<br/>
<a id="pl.4.20"></a><var>4.20</var>(4) satisfy a resource deficiency identified in an approved integrated resource plan
         filed <br/>
<a id="pl.4.21"></a><var>4.21</var>under section 216B.2422;<br/>
<a id="pl.4.22"></a><var>4.22</var>(5) be located outside the metropolitan area as defined under section 473.121, subdivision
         <br/>
<a id="pl.4.23"></a><var>4.23</var>2; and<br/>
<a id="pl.4.24"></a><var>4.24</var>(6) have received, by resolution, the approval of the governing bodies of the city
         and <br/>
<a id="pl.4.25"></a><var>4.25</var>county in which it is located for the exemption of personal property provided by this
         <br/>
<a id="pl.4.26"></a><var>4.26</var>subdivision.<br/>
<a id="pl.4.27"></a><var>4.27</var>(b) Construction of the facility must have been commenced after January 1, 2015, and
         <br/>
<a id="pl.4.28"></a><var>4.28</var>before January 1, 2017. Property eligible for this exemption does not include electric
         <br/>
<a id="pl.4.29"></a><var>4.29</var>transmission lines and interconnections or gas pipelines and interconnections appurtenant
         <br/>
<a id="pl.4.30"></a><var>4.30</var>to the property or the facility.<br/>
<a id="pl.4.31"></a><var>4.31</var><b>EFFECTIVE DATE.</b>This section is effective the day following final enactment.<br/>
<br/>
<a id="bill.1.6.0"></a><a id="pl.5.1"></a><var>5.1</var>    Sec. 6. Minnesota Statutes 2016, section 272.0213, is amended to read:<br/>
<a id="pl.5.2"></a><var>5.2</var><b>272.0213 LEASED SEASONAL-RECREATIONAL LAND.</b><br/>
<a id="pl.5.3"></a><var>5.3</var>    (a) A county board may elect, by resolution, to Qualified lands, as defined in this section, <br/>
<a id="pl.5.4"></a><var>5.4</var>are  exempt from taxation, including the tax under section 
         <statute_ref>273.19</statute_ref>, qualified lands. "Qualified <br/>
<a id="pl.5.5"></a><var>5.5</var>lands" for purposes of this section means property land that:<br/>
<a id="pl.5.6"></a><var>5.6</var>    (1) is owned by a county, city, town, or the state; and<br/>
<a id="pl.5.7"></a><var>5.7</var>    (2) is rented by the entity for noncommercial seasonal-recreational or, noncommercial <br/>
<a id="pl.5.8"></a><var>5.8</var>seasonal-recreational residential use; and, or class 1c commercial seasonal-recreational <br/>
<a id="pl.5.9"></a><var>5.9</var>residential use.<br/>
<a id="pl.5.10"></a><var>5.10</var>    (3) was rented for the purposes specified in clause (2) and was exempt from taxation
         <br/>
<a id="pl.5.11"></a><var>5.11</var>for property taxes payable in 2008.<br/>
<a id="pl.5.12"></a><var>5.12</var>(b) Lands owned by the federal government and rented for noncommercial <br/>
<a id="pl.5.13"></a><var>5.13</var>seasonal-recreational or, noncommercial seasonal-recreational residential, or class 1c <br/>
<a id="pl.5.14"></a><var>5.14</var>commercial seasonal-recreational residential use are exempt from taxation, including the <br/>
<a id="pl.5.15"></a><var>5.15</var>tax under section 
         <statute_ref>273.19</statute_ref>.<br/>
<a id="pl.5.16"></a><var>5.16</var><b>EFFECTIVE DATE.</b>This section is effective beginning with taxes payable in 2018.<br/>
<br/>
<a id="bill.1.7.0"></a><a id="pl.5.17"></a><var>5.17</var>    Sec. 7. Minnesota Statutes 2016, section 272.029, subdivision 2, is amended to read:<br/>
<a id="pl.5.18"></a><var>5.18</var>    Subd. 2. <b>Definitions.</b> (a) For the purposes of this section, the term:<br/>
<a id="pl.5.19"></a><var>5.19</var>(1) "wind energy conversion system" has the meaning given in section 
         <statute_ref>216C.06, <br/>
<a id="pl.5.20"></a><var>5.20</var>subdivision 19
         </statute_ref>, and also includes a substation that is used and owned by one or more wind <br/>
<a id="pl.5.21"></a><var>5.21</var>energy conversion facilities;<br/>
<a id="pl.5.22"></a><var>5.22</var>(2) "large scale wind energy conversion system" means a wind energy conversion system
         <br/>
<a id="pl.5.23"></a><var>5.23</var>of more than 12 megawatts, as measured by the nameplate capacity of the system or
         as <br/>
<a id="pl.5.24"></a><var>5.24</var>combined with other systems as provided in paragraph (b);<br/>
<a id="pl.5.25"></a><var>5.25</var>(3) "medium scale wind energy conversion system" means a wind energy conversion <br/>
<a id="pl.5.26"></a><var>5.26</var>system of over two and not more than 12 megawatts, as measured by the nameplate capacity
         <br/>
<a id="pl.5.27"></a><var>5.27</var>of the system or as combined with other systems as provided in paragraph (b); and<br/>
<a id="pl.5.28"></a><var>5.28</var>(4) "small scale wind energy conversion system" means a wind energy conversion system
         <br/>
<a id="pl.5.29"></a><var>5.29</var>of two megawatts and under, as measured by the nameplate capacity of the system or
         as <br/>
<a id="pl.5.30"></a><var>5.30</var>combined with other systems as provided in paragraph (b).<br/>
<a id="pl.6.1"></a><var>6.1</var>(b) For systems installed and contracted for after January 1, 2002, the total size
         of a <br/>
<a id="pl.6.2"></a><var>6.2</var>wind energy conversion system under this subdivision shall be determined according
         to this <br/>
<a id="pl.6.3"></a><var>6.3</var>paragraph. Unless the systems are interconnected with different distribution systems,
         the <br/>
<a id="pl.6.4"></a><var>6.4</var>nameplate capacity of one wind energy conversion system shall be combined with the
         <br/>
<a id="pl.6.5"></a><var>6.5</var>nameplate capacity of any other wind energy conversion system that is:<br/>
<a id="pl.6.6"></a><var>6.6</var>(1) located within five miles of the wind energy conversion system;<br/>
<a id="pl.6.7"></a><var>6.7</var>(2) constructed within the same calendar year as the wind energy conversion system;
         <br/>
<a id="pl.6.8"></a><var>6.8</var>and<br/>
<a id="pl.6.9"></a><var>6.9</var>(3) under common ownership.<br/>
<a id="pl.6.10"></a><var>6.10</var>In the case of a dispute, the commissioner of commerce shall determine the total size
         of <br/>
<a id="pl.6.11"></a><var>6.11</var>the system, and shall draw all reasonable inferences in favor of combining the systems.<br/>
<a id="pl.6.12"></a><var>6.12</var>(c) In making a determination under paragraph (b), the commissioner of commerce may
         <br/>
<a id="pl.6.13"></a><var>6.13</var>determine that two wind energy conversion systems are under common ownership when
         <br/>
<a id="pl.6.14"></a><var>6.14</var>the underlying ownership structure contains similar the same persons or entities, even if the <br/>
<a id="pl.6.15"></a><var>6.15</var>ownership shares differ between the two systems. Wind energy conversion systems are
         not <br/>
<a id="pl.6.16"></a><var>6.16</var>under common ownership solely because the same person or entity provided equity financing
         <br/>
<a id="pl.6.17"></a><var>6.17</var>for the systems. Wind energy conversion systems that were determined by the commissioner <br/>
<a id="pl.6.18"></a><var>6.18</var>of commerce to be eligible for a renewable energy production incentive under section
         <br/>
<a id="pl.6.19"></a><var>6.19</var>216C.41 are not under common ownership unless a change in the qualifying owner was
         <br/>
<a id="pl.6.20"></a><var>6.20</var>made to an owner of another wind energy conversion system subsequent to the determination
         <br/>
<a id="pl.6.21"></a><var>6.21</var>by the commissioner of commerce.<br/>
<a id="pl.6.22"></a><var>6.22</var><b>EFFECTIVE DATE.</b>This section is effective the day following final enactment.<br/>
<br/>
<a id="bill.1.8.0"></a><a id="pl.6.23"></a><var>6.23</var>    Sec. 8. Minnesota Statutes 2016, section 272.162, is amended to read:<br/>
<a id="pl.6.24"></a><var>6.24</var><b>272.162 RESTRICTIONS ON TRANSFERS OF SPECIFIC PARTS.</b><br/>
<a id="pl.6.25"></a><var>6.25</var>    Subdivision 1. <b>Conditions restricting transfer.</b> When a deed or other instrument <br/>
<a id="pl.6.26"></a><var>6.26</var>conveying a parcel of land is presented to the county auditor for transfer or division
         under <br/>
<a id="pl.6.27"></a><var>6.27</var>sections 
         <statute_ref>272.12</statute_ref>, 
         <statute_ref>272.16</statute_ref>, and 
         <statute_ref>272.161</statute_ref>, the auditor shall not transfer or divide the land or its <br/>
<a id="pl.6.28"></a><var>6.28</var>net tax capacity in the official records and shall not certify the instrument as provided
         in <br/>
<a id="pl.6.29"></a><var>6.29</var>section 
         <statute_ref>272.12</statute_ref>, if:<br/>
<a id="pl.6.30"></a><var>6.30</var>(a) The land conveyed is less than a whole parcel of land as charged in the tax lists;<br/>
<a id="pl.7.1"></a><var>7.1</var>(b) The part conveyed appears within the area of application of municipal or county <br/>
<a id="pl.7.2"></a><var>7.2</var>subdivision regulations adopted and filed under section 394.35 or section 
         <statute_ref>462.36, subdivision <br/>
<a id="pl.7.3"></a><var>7.3</var>1
         </statute_ref>; and<br/>
<a id="pl.7.4"></a><var>7.4</var>(c) The part conveyed is part of or constitutes a subdivision as defined in section
         
         <statute_ref>462.352, <br/>
<a id="pl.7.5"></a><var>7.5</var>subdivision 12
         </statute_ref>.<br/>
<a id="pl.7.6"></a><var>7.6</var>    Subd. 2. <b>Conditions allowing transfer.</b> (a) Notwithstanding the provisions of subdivision <br/>
<a id="pl.7.7"></a><var>7.7</var>1, the county auditor may transfer or divide the land and its net tax capacity and
         may certify <br/>
<a id="pl.7.8"></a><var>7.8</var>the instrument if the instrument contains a certification by the clerk of the municipality or <br/>
<a id="pl.7.9"></a><var>7.9</var>designated county planning official:<br/>
<a id="pl.7.10"></a><var>7.10</var>(a) (1) that the municipality's or county's subdivision regulations do not apply;<br/>
<a id="pl.7.11"></a><var>7.11</var>(b) (2) that the subdivision has been approved by the governing body of the municipality <br/>
<a id="pl.7.12"></a><var>7.12</var>or county; or<br/>
<a id="pl.7.13"></a><var>7.13</var>(c) (3) that the restrictions on the division of taxes and filing and recording have been
         <br/>
<a id="pl.7.14"></a><var>7.14</var>waived by resolution of the governing body of the municipality or county in the particular <br/>
<a id="pl.7.15"></a><var>7.15</var>case because compliance would create an unnecessary hardship and failure to comply
         would <br/>
<a id="pl.7.16"></a><var>7.16</var>not interfere with the purpose of the regulations.<br/>
<a id="pl.7.17"></a><var>7.17</var>(b) If any of the conditions for certification by the municipality or county as provided <br/>
<a id="pl.7.18"></a><var>7.18</var>in this subdivision exist and the municipality or county does not certify that they exist within <br/>
<a id="pl.7.19"></a><var>7.19</var>24 hours after the instrument of conveyance has been presented to the clerk of the
         <br/>
<a id="pl.7.20"></a><var>7.20</var>municipality or designated county planning official, the provisions of subdivision 1 do not <br/>
<a id="pl.7.21"></a><var>7.21</var>apply.<br/>
<a id="pl.7.22"></a><var>7.22</var>(c) If an unexecuted instrument is presented to the municipality or county and any of <br/>
<a id="pl.7.23"></a><var>7.23</var>the conditions for certification by the municipality or county as provided in this subdivision <br/>
<a id="pl.7.24"></a><var>7.24</var>exist, the unexecuted instrument must be certified by the clerk of the municipality or the <br/>
<a id="pl.7.25"></a><var>7.25</var>designated county planning official.<br/>
<a id="pl.7.26"></a><var>7.26</var>    Subd. 3. <b>Applicability of restrictions.</b> (a) This section does not apply to the exceptions <br/>
<a id="pl.7.27"></a><var>7.27</var>set forth in section 
         <statute_ref>272.12</statute_ref>.<br/>
<a id="pl.7.28"></a><var>7.28</var>(b) This section applies only to land within municipalities or counties which choose to <br/>
<a id="pl.7.29"></a><var>7.29</var>be governed by its provisions. A municipality or county may choose to have this section <br/>
<a id="pl.7.30"></a><var>7.30</var>apply to the property within its boundaries by filing a certified copy of a resolution
         of its <br/>
<a id="pl.7.31"></a><var>7.31</var>governing body making that choice with the auditor and recorder of the county in which
         it <br/>
<a id="pl.7.32"></a><var>7.32</var>is located.<br/>
<a id="pl.7.33"></a><var>7.33</var><b>EFFECTIVE DATE.</b>This section is effective the day following final enactment.<br/>
<br/>
<a id="bill.1.9.0"></a><a id="pl.8.1"></a><var>8.1</var>    Sec. 9. Minnesota Statutes 2016, section 273.124, subdivision 3a, is amended to read:<br/>
<a id="pl.8.2"></a><var>8.2</var>    Subd. 3a. <b>Manufactured home park cooperative.</b> (a) When a manufactured home park <br/>
<a id="pl.8.3"></a><var>8.3</var>is owned by a corporation or association organized under chapter 308A or 308B, and
         each <br/>
<a id="pl.8.4"></a><var>8.4</var>person who owns a share or shares in the corporation or association is entitled to
         occupy a <br/>
<a id="pl.8.5"></a><var>8.5</var>lot within the park, the corporation or association may claim homestead treatment
         for the <br/>
<a id="pl.8.6"></a><var>8.6</var>park. Each lot must be designated by legal description or number, and each lot is
         limited to <br/>
<a id="pl.8.7"></a><var>8.7</var>not more than one-half acre of land.<br/>
<a id="pl.8.8"></a><var>8.8</var>    (b) The manufactured home park shall be entitled to homestead treatment if all of
         the <br/>
<a id="pl.8.9"></a><var>8.9</var>following criteria are met:<br/>
<a id="pl.8.10"></a><var>8.10</var>    (1) the occupant or the cooperative corporation or association is paying the ad valorem
         <br/>
<a id="pl.8.11"></a><var>8.11</var>property taxes and any special assessments levied against the land and structure either
         <br/>
<a id="pl.8.12"></a><var>8.12</var>directly, or indirectly through dues to the corporation or association; and<br/>
<a id="pl.8.13"></a><var>8.13</var>    (2) the corporation or association organized under chapter 308A or 308B is wholly
         <br/>
<a id="pl.8.14"></a><var>8.14</var>owned by persons having a right to occupy a lot owned by the corporation or association.<br/>
<a id="pl.8.15"></a><var>8.15</var>    (c) A charitable corporation, organized under the laws of Minnesota with no outstanding
         <br/>
<a id="pl.8.16"></a><var>8.16</var>stock, and granted a ruling by the Internal Revenue Service for 501(c)(3) tax-exempt
         status, <br/>
<a id="pl.8.17"></a><var>8.17</var>qualifies for homestead treatment with respect to a manufactured home park if its
         members <br/>
<a id="pl.8.18"></a><var>8.18</var>hold residential participation warrants entitling them to occupy a lot in the manufactured
         <br/>
<a id="pl.8.19"></a><var>8.19</var>home park.<br/>
<a id="pl.8.20"></a><var>8.20</var>    (d) "Homestead treatment" under this subdivision means the classification rate provided
         <br/>
<a id="pl.8.21"></a><var>8.21</var>for class 4c property classified under section 
         <statute_ref>273.13, subdivision 25</statute_ref>, paragraph (d), clause <br/>
<a id="pl.8.22"></a><var>8.22</var>(5), item (ii)., and the homestead market value exclusion under section 
         <statute_ref>273.13</statute_ref>, subdivision <br/>
<a id="pl.8.23"></a><var>8.23</var>35, does not apply and the property taxes assessed against the park shall not be included in <br/>
<a id="pl.8.24"></a><var>8.24</var>the determination of taxes payable for rent paid under section 
<statute_ref>290A.03</statute_ref>.<br/>
<a id="pl.8.25"></a><var>8.25</var><b>EFFECTIVE DATE.</b>This section is effective beginning with claims for taxes payable <br/>
<a id="pl.8.26"></a><var>8.26</var>in 2018.<br/>
<br/>
<a id="bill.1.10.0"></a><a id="pl.8.27"></a><var>8.27</var>    Sec. 10. Minnesota Statutes 2016, section 273.124, subdivision 14, is amended to read:<br/>
<a id="pl.8.28"></a><var>8.28</var>    Subd. 14. <b>Agricultural homesteads; special provisions. </b> (a) Real estate of less than ten <br/>
<a id="pl.8.29"></a><var>8.29</var>acres that is the homestead of its owner must be classified as class 2a under section
         
         <statute_ref>273.13, <br/>
<a id="pl.8.30"></a><var>8.30</var>subdivision 23
         </statute_ref>, paragraph (a), if:<br/>
<a id="pl.8.31"></a><var>8.31</var>    (1) the parcel on which the house is located is contiguous on at least two sides to
         (i) <br/>
<a id="pl.8.32"></a><var>8.32</var>agricultural land, (ii) land owned or administered by the United States Fish and Wildlife
         <br/>
<a id="pl.9.1"></a><var>9.1</var>Service, or (iii) land administered by the Department of Natural Resources on which
         in lieu <br/>
<a id="pl.9.2"></a><var>9.2</var>taxes are paid under sections 
         <statute_ref>477A.11</statute_ref> to 
         <statute_ref>477A.14</statute_ref>;<br/>
<a id="pl.9.3"></a><var>9.3</var>    (2) its owner also owns a noncontiguous parcel of agricultural land that is at least
         20 <br/>
<a id="pl.9.4"></a><var>9.4</var>acres;<br/>
<a id="pl.9.5"></a><var>9.5</var>    (3) the noncontiguous land is located not farther than four townships or cities, or
         a <br/>
<a id="pl.9.6"></a><var>9.6</var>combination of townships or cities from the homestead; and<br/>
<a id="pl.9.7"></a><var>9.7</var>    (4) the agricultural use value of the noncontiguous land and farm buildings is equal
         to <br/>
<a id="pl.9.8"></a><var>9.8</var>at least 50 percent of the market value of the house, garage, and one acre of land.<br/>
<a id="pl.9.9"></a><var>9.9</var>    Homesteads initially classified as class 2a under the provisions of this paragraph
         shall <br/>
<a id="pl.9.10"></a><var>9.10</var>remain classified as class 2a, irrespective of subsequent changes in the use of adjoining
         <br/>
<a id="pl.9.11"></a><var>9.11</var>properties, as long as the homestead remains under the same ownership, the owner owns
         a <br/>
<a id="pl.9.12"></a><var>9.12</var>noncontiguous parcel of agricultural land that is at least 20 acres, and the agricultural
         use <br/>
<a id="pl.9.13"></a><var>9.13</var>value qualifies under clause (4). Homestead classification under this paragraph is
         limited <br/>
<a id="pl.9.14"></a><var>9.14</var>to property that qualified under this paragraph for the 1998 assessment.<br/>
<a id="pl.9.15"></a><var>9.15</var>    (b)(i) Agricultural property shall be classified as the owner's homestead, to the
         same <br/>
<a id="pl.9.16"></a><var>9.16</var>extent as other agricultural homestead property, if all of the following criteria
         are met:<br/>
<a id="pl.9.17"></a><var>9.17</var>    (1) the agricultural property consists of at least 40 acres including undivided government
         <br/>
<a id="pl.9.18"></a><var>9.18</var>lots and correctional 40's;<br/>
<a id="pl.9.19"></a><var>9.19</var>    (2) the owner, the owner's spouse, or a grandchild, child, sibling, or parent of the
         owner <br/>
<a id="pl.9.20"></a><var>9.20</var>or of the owner's spouse, is actively farming the agricultural property, either on
         the person's <br/>
<a id="pl.9.21"></a><var>9.21</var>own behalf as an individual or on behalf of a partnership operating a family farm,
         family <br/>
<a id="pl.9.22"></a><var>9.22</var>farm corporation, joint family farm venture, or limited liability company of which
         the person <br/>
<a id="pl.9.23"></a><var>9.23</var>is a partner, shareholder, or member;<br/>
<a id="pl.9.24"></a><var>9.24</var>    (3) both the owner of the agricultural property and the person who is actively farming
         <br/>
<a id="pl.9.25"></a><var>9.25</var>the agricultural property under clause (2), are Minnesota residents;<br/>
<a id="pl.9.26"></a><var>9.26</var>    (4) neither the owner nor the spouse of the owner claims another agricultural homestead
         <br/>
<a id="pl.9.27"></a><var>9.27</var>in Minnesota; and<br/>
<a id="pl.9.28"></a><var>9.28</var>    (5) neither the owner nor the person actively farming the agricultural property lives
         <br/>
<a id="pl.9.29"></a><var>9.29</var>farther than four townships or cities, or a combination of four townships or cities,
         from the <br/>
<a id="pl.9.30"></a><var>9.30</var>agricultural property, except that if the owner or the owner's spouse is required
         to live in <br/>
<a id="pl.9.31"></a><var>9.31</var>employer-provided housing, the owner or owner's spouse, whichever is actively farming
         <br/>
<a id="pl.9.32"></a><var>9.32</var>the agricultural property, may live more than four townships or cities, or combination
         of <br/>
<a id="pl.9.33"></a><var>9.33</var>four townships or cities from the agricultural property.<br/>
<a id="pl.10.1"></a><var>10.1</var>    The relationship under this paragraph may be either by blood or marriage.<br/>
<a id="pl.10.2"></a><var>10.2</var>    (ii) Agricultural property held by a trustee under a trust is eligible for agricultural
         <br/>
<a id="pl.10.3"></a><var>10.3</var>homestead classification under this paragraph if the qualifications in clause (i)
         are met, <br/>
<a id="pl.10.4"></a><var>10.4</var>except that "owner" means the grantor of the trust.<br/>
<a id="pl.10.5"></a><var>10.5</var>    (iii) Property containing the residence of an owner who owns qualified property under <br/>
<a id="pl.10.6"></a><var>10.6</var>clause (i) shall be classified as part of the owner's agricultural homestead, if that
         property <br/>
<a id="pl.10.7"></a><var>10.7</var>is also used for noncommercial storage or drying of agricultural crops.<br/>
<a id="pl.10.8"></a><var>10.8</var>(iv) (iii) As used in this paragraph, "agricultural property" means class 2a property and <br/>
<a id="pl.10.9"></a><var>10.9</var>any class 2b property that is contiguous to and under the same ownership as the class
         2a <br/>
<a id="pl.10.10"></a><var>10.10</var>property.<br/>
<a id="pl.10.11"></a><var>10.11</var>    (c) Noncontiguous land shall be included as part of a homestead under section 
         <statute_ref>273.13, <br/>
<a id="pl.10.12"></a><var>10.12</var>subdivision 23
         </statute_ref>, paragraph (a), only if the homestead is classified as class 2a and the detached
         <br/>
<a id="pl.10.13"></a><var>10.13</var>land is located in the same township or city, or not farther than four townships or
         cities or <br/>
<a id="pl.10.14"></a><var>10.14</var>combination thereof from the homestead. Any taxpayer of these noncontiguous lands
         must <br/>
<a id="pl.10.15"></a><var>10.15</var>notify the county assessor that the noncontiguous land is part of the taxpayer's homestead,
         <br/>
<a id="pl.10.16"></a><var>10.16</var>and, if the homestead is located in another county, the taxpayer must also notify
         the assessor <br/>
<a id="pl.10.17"></a><var>10.17</var>of the other county.<br/>
<a id="pl.10.18"></a><var>10.18</var>    (d) Agricultural land used for purposes of a homestead and actively farmed by a person
         <br/>
<a id="pl.10.19"></a><var>10.19</var>holding a vested remainder interest in it must be classified as a homestead under
         section <br/>
<statute_ref><a id="pl.10.20"></a><var>10.20</var>273.13, subdivision 23
         </statute_ref>, paragraph (a). If agricultural land is classified class 2a, any other <br/>
<a id="pl.10.21"></a><var>10.21</var>dwellings on the land used for purposes of a homestead by persons holding vested remainder
         <br/>
<a id="pl.10.22"></a><var>10.22</var>interests who are actively engaged in farming the property, and up to one acre of
         the land <br/>
<a id="pl.10.23"></a><var>10.23</var>surrounding each homestead and reasonably necessary for the use of the dwelling as
         a home, <br/>
<a id="pl.10.24"></a><var>10.24</var>must also be assessed class 2a.<br/>
<a id="pl.10.25"></a><var>10.25</var>    (e) Agricultural land and buildings that were class 2a homestead property under section
         <br/>
<statute_ref><a id="pl.10.26"></a><var>10.26</var>273.13, subdivision 23
         </statute_ref>, paragraph (a), for the 1997 assessment shall remain classified as <br/>
<a id="pl.10.27"></a><var>10.27</var>agricultural homesteads for subsequent assessments if:<br/>
<a id="pl.10.28"></a><var>10.28</var>    (1) the property owner abandoned the homestead dwelling located on the agricultural
         <br/>
<a id="pl.10.29"></a><var>10.29</var>homestead as a result of the April 1997 floods;<br/>
<a id="pl.10.30"></a><var>10.30</var>    (2) the property is located in the county of Polk, Clay, Kittson, Marshall, Norman,
         or <br/>
<a id="pl.10.31"></a><var>10.31</var>Wilkin;<br/>
<a id="pl.11.1"></a><var>11.1</var>    (3) the agricultural land and buildings remain under the same ownership for the current
         <br/>
<a id="pl.11.2"></a><var>11.2</var>assessment year as existed for the 1997 assessment year and continue to be used for
         <br/>
<a id="pl.11.3"></a><var>11.3</var>agricultural purposes;<br/>
<a id="pl.11.4"></a><var>11.4</var>    (4) the dwelling occupied by the owner is located in Minnesota and is within 30 miles
         <br/>
<a id="pl.11.5"></a><var>11.5</var>of one of the parcels of agricultural land that is owned by the taxpayer; and<br/>
<a id="pl.11.6"></a><var>11.6</var>    (5) the owner notifies the county assessor that the relocation was due to the 1997
         floods, <br/>
<a id="pl.11.7"></a><var>11.7</var>and the owner furnishes the assessor any information deemed necessary by the assessor
         in <br/>
<a id="pl.11.8"></a><var>11.8</var>verifying the change in dwelling. Further notifications to the assessor are not required
         if the <br/>
<a id="pl.11.9"></a><var>11.9</var>property continues to meet all the requirements in this paragraph and any dwellings
         on the <br/>
<a id="pl.11.10"></a><var>11.10</var>agricultural land remain uninhabited.<br/>
<a id="pl.11.11"></a><var>11.11</var>    (f) Agricultural land and buildings that were class 2a homestead property under section
         <br/>
<statute_ref><a id="pl.11.12"></a><var>11.12</var>273.13, subdivision 23
         </statute_ref>, paragraph (a), for the 1998 assessment shall remain classified <br/>
<a id="pl.11.13"></a><var>11.13</var>agricultural homesteads for subsequent assessments if:<br/>
<a id="pl.11.14"></a><var>11.14</var>    (1) the property owner abandoned the homestead dwelling located on the agricultural
         <br/>
<a id="pl.11.15"></a><var>11.15</var>homestead as a result of damage caused by a March 29, 1998, tornado;<br/>
<a id="pl.11.16"></a><var>11.16</var>    (2) the property is located in the county of Blue Earth, Brown, Cottonwood, LeSueur,
         <br/>
<a id="pl.11.17"></a><var>11.17</var>Nicollet, Nobles, or Rice;<br/>
<a id="pl.11.18"></a><var>11.18</var>    (3) the agricultural land and buildings remain under the same ownership for the current
         <br/>
<a id="pl.11.19"></a><var>11.19</var>assessment year as existed for the 1998 assessment year;<br/>
<a id="pl.11.20"></a><var>11.20</var>    (4) the dwelling occupied by the owner is located in this state and is within 50 miles
         of <br/>
<a id="pl.11.21"></a><var>11.21</var>one of the parcels of agricultural land that is owned by the taxpayer; and<br/>
<a id="pl.11.22"></a><var>11.22</var>    (5) the owner notifies the county assessor that the relocation was due to a March
         29, <br/>
<a id="pl.11.23"></a><var>11.23</var>1998, tornado, and the owner furnishes the assessor any information deemed necessary
         by <br/>
<a id="pl.11.24"></a><var>11.24</var>the assessor in verifying the change in homestead dwelling. For taxes payable in 1999,
         the <br/>
<a id="pl.11.25"></a><var>11.25</var>owner must notify the assessor by December 1, 1998. Further notifications to the assessor
         <br/>
<a id="pl.11.26"></a><var>11.26</var>are not required if the property continues to meet all the requirements in this paragraph
         and <br/>
<a id="pl.11.27"></a><var>11.27</var>any dwellings on the agricultural land remain uninhabited.<br/>
<a id="pl.11.28"></a><var>11.28</var>    (g) Agricultural property of a family farm corporation, joint family farm venture,
         family <br/>
<a id="pl.11.29"></a><var>11.29</var>farm limited liability company, or partnership operating a family farm as described
         under <br/>
<a id="pl.11.30"></a><var>11.30</var>subdivision 8 shall be classified homestead, to the same extent as other agricultural
         homestead <br/>
<a id="pl.11.31"></a><var>11.31</var>property, if all of the following criteria are met:<br/>
<a id="pl.11.32"></a><var>11.32</var>    (1) the property consists of at least 40 acres including undivided government lots
         and <br/>
<a id="pl.11.33"></a><var>11.33</var>correctional 40's;<br/>
<a id="pl.12.1"></a><var>12.1</var>    (2) a shareholder, member, or partner of that entity is actively farming the agricultural
         <br/>
<a id="pl.12.2"></a><var>12.2</var>property;<br/>
<a id="pl.12.3"></a><var>12.3</var>    (3) that shareholder, member, or partner who is actively farming the agricultural
         property <br/>
<a id="pl.12.4"></a><var>12.4</var>is a Minnesota resident;<br/>
<a id="pl.12.5"></a><var>12.5</var>    (4) neither that shareholder, member, or partner, nor the spouse of that shareholder,
         <br/>
<a id="pl.12.6"></a><var>12.6</var>member, or partner claims another agricultural homestead in Minnesota; and<br/>
<a id="pl.12.7"></a><var>12.7</var>    (5) that shareholder, member, or partner does not live farther than four townships
         or <br/>
<a id="pl.12.8"></a><var>12.8</var>cities, or a combination of four townships or cities, from the agricultural property.<br/>
<a id="pl.12.9"></a><var>12.9</var>    Homestead treatment applies under this paragraph for property leased to a family farm
         <br/>
<a id="pl.12.10"></a><var>12.10</var>corporation, joint farm venture, limited liability company, or partnership operating
         a family <br/>
<a id="pl.12.11"></a><var>12.11</var>farm if legal title to the property is in the name of an individual who is a member,
         shareholder, <br/>
<a id="pl.12.12"></a><var>12.12</var>or partner in the entity.<br/>
<a id="pl.12.13"></a><var>12.13</var>    (h) To be eligible for the special agricultural homestead under this subdivision,
         an initial <br/>
<a id="pl.12.14"></a><var>12.14</var>full application must be submitted to the county assessor where the property is located.
         <br/>
<a id="pl.12.15"></a><var>12.15</var>Owners and the persons who are actively farming the property shall be required to
         complete <br/>
<a id="pl.12.16"></a><var>12.16</var>only a one-page abbreviated version of the application in each subsequent year provided
         <br/>
<a id="pl.12.17"></a><var>12.17</var>that none of the following items have changed since the initial application:<br/>
<a id="pl.12.18"></a><var>12.18</var>    (1) the day-to-day operation, administration, and financial risks remain the same;<br/>
<a id="pl.12.19"></a><var>12.19</var>    (2) the owners and the persons actively farming the property continue to live within
         the <br/>
<a id="pl.12.20"></a><var>12.20</var>four townships or city criteria and are Minnesota residents;<br/>
<a id="pl.12.21"></a><var>12.21</var>    (3) the same operator of the agricultural property is listed with the Farm Service
         Agency;<br/>
<a id="pl.12.22"></a><var>12.22</var>    (4) a Schedule F or equivalent income tax form was filed for the most recent year;<br/>
<a id="pl.12.23"></a><var>12.23</var>    (5) the property's acreage is unchanged; and<br/>
<a id="pl.12.24"></a><var>12.24</var>    (6) none of the property's acres have been enrolled in a federal or state farm program
         <br/>
<a id="pl.12.25"></a><var>12.25</var>since the initial application.<br/>
<a id="pl.12.26"></a><var>12.26</var>    The owners and any persons who are actively farming the property must include the
         <br/>
<a id="pl.12.27"></a><var>12.27</var>appropriate Social Security numbers, and sign and date the application. If any of
         the specified <br/>
<a id="pl.12.28"></a><var>12.28</var>information has changed since the full application was filed, the owner must notify
         the <br/>
<a id="pl.12.29"></a><var>12.29</var>assessor, and must complete a new application to determine if the property continues
         to <br/>
<a id="pl.12.30"></a><var>12.30</var>qualify for the special agricultural homestead. The commissioner of revenue shall
         prepare <br/>
<a id="pl.12.31"></a><var>12.31</var>a standard reapplication form for use by the assessors.<br/>
<a id="pl.13.1"></a><var>13.1</var>    (i) Agricultural land and buildings that were class 2a homestead property under section
         <br/>
<statute_ref><a id="pl.13.2"></a><var>13.2</var>273.13, subdivision 23
         </statute_ref>, paragraph (a), for the 2007 assessment shall remain classified <br/>
<a id="pl.13.3"></a><var>13.3</var>agricultural homesteads for subsequent assessments if:<br/>
<a id="pl.13.4"></a><var>13.4</var>    (1) the property owner abandoned the homestead dwelling located on the agricultural
         <br/>
<a id="pl.13.5"></a><var>13.5</var>homestead as a result of damage caused by the August 2007 floods;<br/>
<a id="pl.13.6"></a><var>13.6</var>    (2) the property is located in the county of Dodge, Fillmore, Houston, Olmsted, Steele,
         <br/>
<a id="pl.13.7"></a><var>13.7</var>Wabasha, or Winona;<br/>
<a id="pl.13.8"></a><var>13.8</var>    (3) the agricultural land and buildings remain under the same ownership for the current
         <br/>
<a id="pl.13.9"></a><var>13.9</var>assessment year as existed for the 2007 assessment year;<br/>
<a id="pl.13.10"></a><var>13.10</var>    (4) the dwelling occupied by the owner is located in this state and is within 50 miles
         of <br/>
<a id="pl.13.11"></a><var>13.11</var>one of the parcels of agricultural land that is owned by the taxpayer; and<br/>
<a id="pl.13.12"></a><var>13.12</var>    (5) the owner notifies the county assessor that the relocation was due to the August
         2007 <br/>
<a id="pl.13.13"></a><var>13.13</var>floods, and the owner furnishes the assessor any information deemed necessary by the
         <br/>
<a id="pl.13.14"></a><var>13.14</var>assessor in verifying the change in homestead dwelling. For taxes payable in 2009,
         the <br/>
<a id="pl.13.15"></a><var>13.15</var>owner must notify the assessor by December 1, 2008. Further notifications to the assessor
         <br/>
<a id="pl.13.16"></a><var>13.16</var>are not required if the property continues to meet all the requirements in this paragraph
         and <br/>
<a id="pl.13.17"></a><var>13.17</var>any dwellings on the agricultural land remain uninhabited.<br/>
<a id="pl.13.18"></a><var>13.18</var>    (j) Agricultural land and buildings that were class 2a homestead property under section
         <br/>
<statute_ref><a id="pl.13.19"></a><var>13.19</var>273.13, subdivision 23
         </statute_ref>, paragraph (a), for the 2008 assessment shall remain classified as <br/>
<a id="pl.13.20"></a><var>13.20</var>agricultural homesteads for subsequent assessments if:<br/>
<a id="pl.13.21"></a><var>13.21</var>    (1) the property owner abandoned the homestead dwelling located on the agricultural
         <br/>
<a id="pl.13.22"></a><var>13.22</var>homestead as a result of the March 2009 floods;<br/>
<a id="pl.13.23"></a><var>13.23</var>    (2) the property is located in the county of Marshall;<br/>
<a id="pl.13.24"></a><var>13.24</var>    (3) the agricultural land and buildings remain under the same ownership for the current
         <br/>
<a id="pl.13.25"></a><var>13.25</var>assessment year as existed for the 2008 assessment year and continue to be used for
         <br/>
<a id="pl.13.26"></a><var>13.26</var>agricultural purposes;<br/>
<a id="pl.13.27"></a><var>13.27</var>    (4) the dwelling occupied by the owner is located in Minnesota and is within 50 miles
         <br/>
<a id="pl.13.28"></a><var>13.28</var>of one of the parcels of agricultural land that is owned by the taxpayer; and<br/>
<a id="pl.13.29"></a><var>13.29</var>    (5) the owner notifies the county assessor that the relocation was due to the 2009
         floods, <br/>
<a id="pl.13.30"></a><var>13.30</var>and the owner furnishes the assessor any information deemed necessary by the assessor
         in <br/>
<a id="pl.13.31"></a><var>13.31</var>verifying the change in dwelling. Further notifications to the assessor are not required
         if the <br/>
<a id="pl.14.1"></a><var>14.1</var>property continues to meet all the requirements in this paragraph and any dwellings
         on the <br/>
<a id="pl.14.2"></a><var>14.2</var>agricultural land remain uninhabited.<br/>
<a id="pl.14.3"></a><var>14.3</var><b>EFFECTIVE DATE.</b>This section is effective beginning for property taxes payable in <br/>
<a id="pl.14.4"></a><var>14.4</var>2018.<br/>
<br/>
<a id="bill.1.11.0"></a><a id="pl.14.5"></a><var>14.5</var>    Sec. 11. Minnesota Statutes 2016, section 273.124, subdivision 21, is amended to read:<br/>
<a id="pl.14.6"></a><var>14.6</var>    Subd. 21. <b>Trust property; homestead.</b> Real or personal property, including agricultural <br/>
<a id="pl.14.7"></a><var>14.7</var>property, held by a trustee under a trust is eligible for classification as homestead property
         <br/>
<a id="pl.14.8"></a><var>14.8</var>if the property satisfies the requirements of paragraph (a), (b), (c), or (d), or (e).<br/>
<a id="pl.14.9"></a><var>14.9</var>    (a) The grantor or surviving spouse of the grantor of the trust occupies and uses
         the <br/>
<a id="pl.14.10"></a><var>14.10</var>property as a homestead.<br/>
<a id="pl.14.11"></a><var>14.11</var>    (b) A relative or surviving relative of the grantor who meets the requirements of
         <br/>
<a id="pl.14.12"></a><var>14.12</var>subdivision 1, paragraph (c), in the case of residential real estate; or subdivision
         1, paragraph <br/>
<a id="pl.14.13"></a><var>14.13</var>(d), in the case of agricultural property, occupies and uses the property as a homestead.<br/>
<a id="pl.14.14"></a><var>14.14</var>    (c) A family farm corporation, joint farm venture, limited liability company, or partnership
         <br/>
<a id="pl.14.15"></a><var>14.15</var>operating a family farm in which the grantor or the grantor's surviving spouse is
         a <br/>
<a id="pl.14.16"></a><var>14.16</var>shareholder, member, or partner rents the property; and, either (1) a shareholder,
         member, <br/>
<a id="pl.14.17"></a><var>14.17</var>or partner of the corporation, joint farm venture, limited liability company, or partnership
         <br/>
<a id="pl.14.18"></a><var>14.18</var>occupies and uses the property as a homestead; or (2) the property is at least 40
         acres, <br/>
<a id="pl.14.19"></a><var>14.19</var>including undivided government lots and correctional 40's, and a shareholder, member,
         or <br/>
<a id="pl.14.20"></a><var>14.20</var>partner of the tenant-entity is actively farming the property on behalf of the corporation,
         <br/>
<a id="pl.14.21"></a><var>14.21</var>joint farm venture, limited liability company, or partnership.<br/>
<a id="pl.14.22"></a><var>14.22</var>    (d) A person who has received homestead classification for property taxes payable
         in <br/>
<a id="pl.14.23"></a><var>14.23</var>2000 on the basis of an unqualified legal right under the terms of the trust agreement
         to <br/>
<a id="pl.14.24"></a><var>14.24</var>occupy the property as that person's homestead and who continues to use the property
         as a <br/>
<a id="pl.14.25"></a><var>14.25</var>homestead; or, a person who received the homestead classification for taxes payable
         in 2005 <br/>
<a id="pl.14.26"></a><var>14.26</var>under paragraph (c) who does not qualify under paragraph (c) for taxes payable in
         2006 or <br/>
<a id="pl.14.27"></a><var>14.27</var>thereafter but who continues to qualify under paragraph (c) as it existed for taxes
         payable <br/>
<a id="pl.14.28"></a><var>14.28</var>in 2005.<br/>
<a id="pl.14.29"></a><var>14.29</var>(e) The qualifications under subdivision 14, paragraph (b), clause (i), are met. For
         <br/>
<a id="pl.14.30"></a><var>14.30</var>purposes of this paragraph, "owner" means the grantor of the trust or the surviving
         spouse <br/>
<a id="pl.14.31"></a><var>14.31</var>of the grantor.<br/>
<a id="pl.14.32"></a><var>14.32</var>(f) For purposes of this subdivision, the following terms have the meanings given
         them:<br/>
<a id="pl.15.1"></a><var>15.1</var>(1) "agricultural property" means the house, garage, other farm buildings and structures,
         <br/>
<a id="pl.15.2"></a><var>15.2</var>and agricultural land;<br/>
<a id="pl.15.3"></a><var>15.3</var>(2) "agricultural land" has the meaning given in section 273.13, subdivision 23, except
         <br/>
<a id="pl.15.4"></a><var>15.4</var>that the phrases "owned by same person" or "under the same ownership" as used in that
         <br/>
<a id="pl.15.5"></a><var>15.5</var>subdivision mean and include contiguous tax parcels owned by:<br/>
<a id="pl.15.6"></a><var>15.6</var>(i) an individual and a trust of which the individual, the individual's spouse, or
         the <br/>
<a id="pl.15.7"></a><var>15.7</var>individual's deceased spouse is the grantor; or<br/>
<a id="pl.15.8"></a><var>15.8</var>(ii) different trusts of which the grantors of each trust are any combination of an
         <br/>
<a id="pl.15.9"></a><var>15.9</var>individual, the individual's spouse, or the individual's deceased spouse; and<br/>
<a id="pl.15.10"></a><var>15.10</var>    For purposes of this subdivision, (3) "grantor" is defined as means the person creating <br/>
<a id="pl.15.11"></a><var>15.11</var>or establishing a testamentary, inter Vivos, revocable or irrevocable trust by written
         <br/>
<a id="pl.15.12"></a><var>15.12</var>instrument or through the exercise of a power of appointment.<br/>
<a id="pl.15.13"></a><var>15.13</var>(g) Noncontiguous land is included as part of a homestead under this subdivision,
         only <br/>
<a id="pl.15.14"></a><var>15.14</var>if the homestead is classified as class 2a, as defined in section 273.13, subdivision
         23, and <br/>
<a id="pl.15.15"></a><var>15.15</var>the detached land is located in the same township or city, or not farther than four
         townships <br/>
<a id="pl.15.16"></a><var>15.16</var>or cities or combination thereof from the homestead. Any taxpayer of these noncontiguous
         <br/>
<a id="pl.15.17"></a><var>15.17</var>lands must notify the county assessor that the noncontiguous land is part of the taxpayer's
         <br/>
<a id="pl.15.18"></a><var>15.18</var>homestead, and, if the homestead is located in another county, the taxpayer must also
         notify <br/>
<a id="pl.15.19"></a><var>15.19</var>the assessor of the other county.<br/>
<a id="pl.15.20"></a><var>15.20</var><b>EFFECTIVE DATE.</b>This section is effective beginning for property taxes payable in <br/>
<a id="pl.15.21"></a><var>15.21</var>2018.<br/>
<br/>
<a id="bill.1.12.0"></a><a id="pl.15.22"></a><var>15.22</var>    Sec. 12. Minnesota Statutes 2016, section 273.125, subdivision 8, is amended to read:<br/>
<a id="pl.15.23"></a><var>15.23</var>    Subd. 8. <b>Manufactured homes; sectional structures.</b> (a) In this section, "manufactured <br/>
<a id="pl.15.24"></a><var>15.24</var>home" means a structure transportable in one or more sections, which is built on a
         permanent <br/>
<a id="pl.15.25"></a><var>15.25</var>chassis, and designed to be used as a dwelling with or without a permanent foundation
         when <br/>
<a id="pl.15.26"></a><var>15.26</var>connected to the required utilities, and contains the plumbing, heating, air conditioning,
         and <br/>
<a id="pl.15.27"></a><var>15.27</var>electrical systems in it. Manufactured home includes any accessory structure that
         is an <br/>
<a id="pl.15.28"></a><var>15.28</var>addition or supplement to the manufactured home and, when installed, becomes a part
         of <br/>
<a id="pl.15.29"></a><var>15.29</var>the manufactured home.<br/>
<a id="pl.15.30"></a><var>15.30</var>    (b) Except as provided in paragraph (c), a manufactured home that meets each of the
         <br/>
<a id="pl.15.31"></a><var>15.31</var>following criteria must be valued and assessed as an improvement to real property,
         the <br/>
<a id="pl.15.32"></a><var>15.32</var>appropriate real property classification applies, and the valuation is subject to
         review and <br/>
<a id="pl.15.33"></a><var>15.33</var>the taxes payable in the manner provided for real property:<br/>
<a id="pl.16.1"></a><var>16.1</var>    (1) the owner of the unit holds title to the land on which it is situated;<br/>
<a id="pl.16.2"></a><var>16.2</var>    (2) the unit is affixed to the land by a permanent foundation or is installed at its
         location <br/>
<a id="pl.16.3"></a><var>16.3</var>in accordance with the Manufactured Home Building Code in sections 
         <statute_ref>327.31 </statute_ref>to 
         <statute_ref>327.34</statute_ref>, <br/>
<a id="pl.16.4"></a><var>16.4</var>and rules adopted under those sections, or is affixed to the land like other real
         property in <br/>
<a id="pl.16.5"></a><var>16.5</var>the taxing district; and<br/>
<a id="pl.16.6"></a><var>16.6</var>    (3) the unit is connected to public utilities, has a well and septic tank system,
         or is serviced <br/>
<a id="pl.16.7"></a><var>16.7</var>by water and sewer facilities comparable to other real property in the taxing district.<br/>
<a id="pl.16.8"></a><var>16.8</var>    (c) A manufactured home that meets each of the following criteria must be assessed
         at <br/>
<a id="pl.16.9"></a><var>16.9</var>the rate provided by the appropriate real property classification but must be treated
         as <br/>
<a id="pl.16.10"></a><var>16.10</var>personal property, and the valuation is subject to review and the taxes payable in
         the manner <br/>
<a id="pl.16.11"></a><var>16.11</var>provided in this section:<br/>
<a id="pl.16.12"></a><var>16.12</var>    (1) the owner of the unit is a lessee of the land under the terms of a lease, or the
         unit is <br/>
<a id="pl.16.13"></a><var>16.13</var>located in a manufactured home park but is not the homestead of the park owner;<br/>
<a id="pl.16.14"></a><var>16.14</var>    (2) the unit is affixed to the land by a permanent foundation or is installed at its
         location <br/>
<a id="pl.16.15"></a><var>16.15</var>in accordance with the Manufactured Home Building Code contained in sections 
         <statute_ref>327.31</statute_ref> to <br/>
<statute_ref><a id="pl.16.16"></a><var>16.16</var>327.34
         </statute_ref>, and the rules adopted under those sections, or is affixed to the land like other
         real <br/>
<a id="pl.16.17"></a><var>16.17</var>property in the taxing district; and<br/>
<a id="pl.16.18"></a><var>16.18</var>    (3) the unit is connected to public utilities, has a well and septic tank system,
         or is serviced <br/>
<a id="pl.16.19"></a><var>16.19</var>by water and sewer facilities comparable to other real property in the taxing district.<br/>
<a id="pl.16.20"></a><var>16.20</var>    (d) Sectional structures must be valued and assessed as an improvement to real property
         <br/>
<a id="pl.16.21"></a><var>16.21</var>if the owner of the structure holds title to the land on which it is located or is
         a qualifying <br/>
<a id="pl.16.22"></a><var>16.22</var>lessee of the land under section 
         <statute_ref>273.19</statute_ref>. In this paragraph "sectional structure" means a <br/>
<a id="pl.16.23"></a><var>16.23</var>building or structural unit that has been in whole or substantial part manufactured
         or <br/>
<a id="pl.16.24"></a><var>16.24</var>constructed at an off-site location to be wholly or partially assembled on site alone
         or with <br/>
<a id="pl.16.25"></a><var>16.25</var>other units and attached to a permanent foundation.<br/>
<a id="pl.16.26"></a><var>16.26</var>    (e) The commissioner of revenue may adopt rules under the Administrative Procedure
         <br/>
<a id="pl.16.27"></a><var>16.27</var>Act to establish additional criteria for the classification of manufactured homes
         and sectional <br/>
<a id="pl.16.28"></a><var>16.28</var>structures under this subdivision.<br/>
<a id="pl.16.29"></a><var>16.29</var>    (f) A storage shed, deck, or similar improvement constructed on property that is leased
         <br/>
<a id="pl.16.30"></a><var>16.30</var>or rented as a site for a manufactured home, sectional structure, park trailer, or
         travel trailer <br/>
<a id="pl.16.31"></a><var>16.31</var>is taxable as provided in this section. In the case of property that is leased or
         rented as a site <br/>
<a id="pl.16.32"></a><var>16.32</var>for a travel trailer, a storage shed, deck, or similar improvement on the site that
         is considered <br/>
<a id="pl.16.33"></a><var>16.33</var>personal property under this paragraph is taxable only if its total estimated market
         value is <br/>
<a id="pl.17.1"></a><var>17.1</var>over $1,000 $10,000. The property is taxable as personal property to the lessee of the site <br/>
<a id="pl.17.2"></a><var>17.2</var>if it is not owned by the owner of the site. The property is taxable as real estate
         if it is owned <br/>
<a id="pl.17.3"></a><var>17.3</var>by the owner of the site. As a condition of permitting the owner of the manufactured
         home, <br/>
<a id="pl.17.4"></a><var>17.4</var>sectional structure, park trailer, or travel trailer to construct improvements on
         the leased or <br/>
<a id="pl.17.5"></a><var>17.5</var>rented site, the owner of the site must obtain the permanent home address of the lessee
         or <br/>
<a id="pl.17.6"></a><var>17.6</var>user of the site. The site owner must provide the name and address to the assessor
         upon <br/>
<a id="pl.17.7"></a><var>17.7</var>request.<br/>
<br/>
<a id="bill.1.13.0"></a><a id="pl.17.8"></a><var>17.8</var>    Sec. 13. Minnesota Statutes 2016, section 273.13, subdivision 22, is amended to read:<br/>
<a id="pl.17.9"></a><var>17.9</var>    Subd. 22. <b>Class 1.</b> (a) Except as provided in subdivision 23 and in paragraphs (b) and <br/>
<a id="pl.17.10"></a><var>17.10</var>(c), real estate which is residential and used for homestead purposes is class 1a.
         In the case <br/>
<a id="pl.17.11"></a><var>17.11</var>of a duplex or triplex in which one of the units is used for homestead purposes, the
         entire <br/>
<a id="pl.17.12"></a><var>17.12</var>property is deemed to be used for homestead purposes. The market value of class 1a
         property <br/>
<a id="pl.17.13"></a><var>17.13</var>must be determined based upon the value of the house, garage, and land.<br/>
<a id="pl.17.14"></a><var>17.14</var>    The first $500,000 of market value of class 1a property has a net classification rate
         of <br/>
<a id="pl.17.15"></a><var>17.15</var>one percent of its market value; and the market value of class 1a property that exceeds
         <br/>
<a id="pl.17.16"></a><var>17.16</var>$500,000 has a classification rate of 1.25 percent of its market value.<br/>
<a id="pl.17.17"></a><var>17.17</var>    (b) Class 1b property includes homestead real estate or homestead manufactured homes
         <br/>
<a id="pl.17.18"></a><var>17.18</var>used for the purposes of a homestead by:<br/>
<a id="pl.17.19"></a><var>17.19</var>    (1) any person who is blind as defined in section 
         <statute_ref>256D.35</statute_ref>, or the blind person and the <br/>
<a id="pl.17.20"></a><var>17.20</var>blind person's spouse;<br/>
<a id="pl.17.21"></a><var>17.21</var>    (2) any person who is permanently and totally disabled or by the disabled person and
         <br/>
<a id="pl.17.22"></a><var>17.22</var>the disabled person's spouse; or<br/>
<a id="pl.17.23"></a><var>17.23</var>    (3) the surviving spouse of a permanently and totally disabled veteran homesteading
         a <br/>
<a id="pl.17.24"></a><var>17.24</var>property classified under this paragraph for taxes payable in 2008.<br/>
<a id="pl.17.25"></a><var>17.25</var>    Property is classified and assessed under clause (2) only if the government agency
         or <br/>
<a id="pl.17.26"></a><var>17.26</var>income-providing source certifies, upon the request of the homestead occupant, that
         the <br/>
<a id="pl.17.27"></a><var>17.27</var>homestead occupant satisfies the disability requirements of this paragraph, and that
         the <br/>
<a id="pl.17.28"></a><var>17.28</var>property is not eligible for the valuation exclusion under subdivision 34.<br/>
<a id="pl.17.29"></a><var>17.29</var>    Property is classified and assessed under paragraph (b) only if the commissioner of
         <br/>
<a id="pl.17.30"></a><var>17.30</var>revenue or the county assessor certifies that the homestead occupant satisfies the
         requirements <br/>
<a id="pl.17.31"></a><var>17.31</var>of this paragraph.<br/>
<a id="pl.18.1"></a><var>18.1</var>    Permanently and totally disabled for the purpose of this subdivision means a condition
         <br/>
<a id="pl.18.2"></a><var>18.2</var>which is permanent in nature and totally incapacitates the person from working at
         an <br/>
<a id="pl.18.3"></a><var>18.3</var>occupation which brings the person an income. The first $50,000 market value of class
         1b <br/>
<a id="pl.18.4"></a><var>18.4</var>property has a net classification rate of .45 percent of its market value. The remaining
         market <br/>
<a id="pl.18.5"></a><var>18.5</var>value of class 1b property has a classification rate using the rates for class 1a
         or class 2a <br/>
<a id="pl.18.6"></a><var>18.6</var>property, whichever is appropriate, of similar market value.<br/>
<a id="pl.18.7"></a><var>18.7</var>    (c) Class 1c property is commercial use real and personal property that abuts public
         <br/>
<a id="pl.18.8"></a><var>18.8</var>water as defined in section 
         <statute_ref>103G.005, subdivision 15</statute_ref>, or abuts a state trail administered by <br/>
<a id="pl.18.9"></a><var>18.9</var>the Department of Natural Resources, and is devoted to temporary and seasonal residential <br/>
<a id="pl.18.10"></a><var>18.10</var>occupancy for recreational purposes but not devoted to commercial purposes for more
         than <br/>
<a id="pl.18.11"></a><var>18.11</var>250 days in the year preceding the year of assessment, and that includes a portion
         used as <br/>
<a id="pl.18.12"></a><var>18.12</var>a homestead by the owner, which includes a dwelling occupied as a homestead by a <br/>
<a id="pl.18.13"></a><var>18.13</var>shareholder of a corporation that owns the resort, a partner in a partnership that
         owns the <br/>
<a id="pl.18.14"></a><var>18.14</var>resort, or a member of a limited liability company that owns the resort even if, whether the <br/>
<a id="pl.18.15"></a><var>18.15</var>title to the homestead is held by the corporation, partnership, or limited liability
         company, <br/>
<a id="pl.18.16"></a><var>18.16</var>or by a shareholder of a corporation who owns the resort, a partner in a partnership
         who <br/>
<a id="pl.18.17"></a><var>18.17</var>owns the resort, or a member of a limited liability company who owns the resort. For <br/>
<a id="pl.18.18"></a><var>18.18</var>purposes of this paragraph, property is devoted to a commercial purpose on a specific
         day <br/>
<a id="pl.18.19"></a><var>18.19</var>if any portion of the property, excluding the portion used exclusively as a homestead,
         is <br/>
<a id="pl.18.20"></a><var>18.20</var>used for residential occupancy and a fee is charged for residential occupancy. Class
         1c <br/>
<a id="pl.18.21"></a><var>18.21</var>property must contain three or more rental units. A "rental unit" is defined as a
         cabin, <br/>
<a id="pl.18.22"></a><var>18.22</var>condominium, townhouse, sleeping room, or individual camping site equipped with water
         <br/>
<a id="pl.18.23"></a><var>18.23</var>and electrical hookups for recreational vehicles. Class 1c property must provide recreational
         <br/>
<a id="pl.18.24"></a><var>18.24</var>activities such as the rental of ice fishing houses, boats and motors, snowmobiles,
         downhill <br/>
<a id="pl.18.25"></a><var>18.25</var>or cross-country ski equipment; provide marina services, launch services, or guide
         services; <br/>
<a id="pl.18.26"></a><var>18.26</var>or sell bait and fishing tackle. Any unit in which the right to use the property is
         transferred <br/>
<a id="pl.18.27"></a><var>18.27</var>to an individual or entity by deeded interest, or the sale of shares or stock, no
         longer qualifies <br/>
<a id="pl.18.28"></a><var>18.28</var>for class 1c even though it may remain available for rent. A camping pad offered for
         rent <br/>
<a id="pl.18.29"></a><var>18.29</var>by a property that otherwise qualifies for class 1c is also class 1c, regardless of
         the term of <br/>
<a id="pl.18.30"></a><var>18.30</var>the rental agreement, as long as the use of the camping pad does not exceed 250 days.
         If <br/>
<a id="pl.18.31"></a><var>18.31</var>the same owner owns two separate parcels that are located in the same township, and
         one <br/>
<a id="pl.18.32"></a><var>18.32</var>of those properties is classified as a class 1c property and the other would be eligible
         to be <br/>
<a id="pl.18.33"></a><var>18.33</var>classified as a class 1c property if it was used as the homestead of the owner, both
         properties <br/>
<a id="pl.18.34"></a><var>18.34</var>will be assessed as a single class 1c property; for purposes of this sentence, properties
         are <br/>
<a id="pl.18.35"></a><var>18.35</var>deemed to be owned by the same owner if each of them is owned by a limited liability
         <br/>
<a id="pl.18.36"></a><var>18.36</var>company, and both limited liability companies have the same membership. The portion
         of <br/>
<a id="pl.19.1"></a><var>19.1</var>the property used as a homestead is class 1a property under paragraph (a). The remainder
         <br/>
<a id="pl.19.2"></a><var>19.2</var>of the property is classified as follows: the first $600,000 of market value is tier
         I, the next <br/>
<a id="pl.19.3"></a><var>19.3</var>$1,700,000 of market value is tier II, and any remaining market value is tier III.
         The <br/>
<a id="pl.19.4"></a><var>19.4</var>classification rates for class 1c are: tier I, 0.50 percent; tier II, 1.0 percent;
         and tier III, 1.25 <br/>
<a id="pl.19.5"></a><var>19.5</var>percent. Owners of real and personal property devoted to temporary and seasonal residential
         <br/>
<a id="pl.19.6"></a><var>19.6</var>occupancy for recreation purposes in which all or a portion of the property was devoted
         to <br/>
<a id="pl.19.7"></a><var>19.7</var>commercial purposes for not more than 250 days in the year preceding the year of assessment
         <br/>
<a id="pl.19.8"></a><var>19.8</var>desiring classification as class 1c, must submit a declaration to the assessor designating
         the <br/>
<a id="pl.19.9"></a><var>19.9</var>cabins or units occupied for 250 days or less in the year preceding the year of assessment
         <br/>
<a id="pl.19.10"></a><var>19.10</var>by January 15 of the assessment year. Those cabins or units and a proportionate share
         of <br/>
<a id="pl.19.11"></a><var>19.11</var>the land on which they are located must be designated as class 1c as otherwise provided.
         <br/>
<a id="pl.19.12"></a><var>19.12</var>The remainder of the cabins or units and a proportionate share of the land on which
         they <br/>
<a id="pl.19.13"></a><var>19.13</var>are located must be designated as class 3a commercial. The owner of property desiring
         <br/>
<a id="pl.19.14"></a><var>19.14</var>designation as class 1c property must provide guest registers or other records demonstrating
         <br/>
<a id="pl.19.15"></a><var>19.15</var>that the units for which class 1c designation is sought were not occupied for more
         than 250 <br/>
<a id="pl.19.16"></a><var>19.16</var>days in the year preceding the assessment if so requested. The portion of a property
         operated <br/>
<a id="pl.19.17"></a><var>19.17</var>as a (1) restaurant, (2) bar, (3) gift shop, (4) conference center or meeting room,
         and (5) <br/>
<a id="pl.19.18"></a><var>19.18</var>other nonresidential facility operated on a commercial basis not directly related
         to temporary <br/>
<a id="pl.19.19"></a><var>19.19</var>and seasonal residential occupancy for recreation purposes does not qualify for class
         1c.<br/>
<a id="pl.19.20"></a><var>19.20</var>    (d) Class 1d property includes structures that meet all of the following criteria:<br/>
<a id="pl.19.21"></a><var>19.21</var>    (1) the structure is located on property that is classified as agricultural property
         under <br/>
<a id="pl.19.22"></a><var>19.22</var>section 
         <statute_ref>273.13, subdivision 23</statute_ref>;<br/>
<a id="pl.19.23"></a><var>19.23</var>    (2) the structure is occupied exclusively by seasonal farm workers during the time
         when <br/>
<a id="pl.19.24"></a><var>19.24</var>they work on that farm, and the occupants are not charged rent for the privilege of
         occupying <br/>
<a id="pl.19.25"></a><var>19.25</var>the property, provided that use of the structure for storage of farm equipment and
         produce <br/>
<a id="pl.19.26"></a><var>19.26</var>does not disqualify the property from classification under this paragraph;<br/>
<a id="pl.19.27"></a><var>19.27</var>    (3) the structure meets all applicable health and safety requirements for the appropriate
         <br/>
<a id="pl.19.28"></a><var>19.28</var>season; and<br/>
<a id="pl.19.29"></a><var>19.29</var>    (4) the structure is not salable as residential property because it does not comply
         with <br/>
<a id="pl.19.30"></a><var>19.30</var>local ordinances relating to location in relation to streets or roads.<br/>
<a id="pl.19.31"></a><var>19.31</var>    The market value of class 1d property has the same classification rates as class 1a
         property <br/>
<a id="pl.19.32"></a><var>19.32</var>under paragraph (a).<br/>
<a id="pl.19.33"></a><var>19.33</var><b>EFFECTIVE DATE.</b>This section is effective beginning with taxes payable in 2018.<br/>
<br/>
<a id="bill.1.14.0"></a><a id="pl.20.1"></a><var>20.1</var>    Sec. 14. Minnesota Statutes 2016, section 273.13, subdivision 23, is amended to read:<br/>
<a id="pl.20.2"></a><var>20.2</var>    Subd. 23. <b>Class 2.</b> (a) An agricultural homestead consists of class 2a agricultural land <br/>
<a id="pl.20.3"></a><var>20.3</var>that is homesteaded, along with any class 2b rural vacant land that is contiguous
         to the class <br/>
<a id="pl.20.4"></a><var>20.4</var>2a land under the same ownership. The market value of the house and garage and immediately
         <br/>
<a id="pl.20.5"></a><var>20.5</var>surrounding one acre of land has the same classification rates as class 1a or 1b property
         <br/>
<a id="pl.20.6"></a><var>20.6</var>under subdivision 22. The value of the remaining land including improvements up to
         the <br/>
<a id="pl.20.7"></a><var>20.7</var>first tier valuation limit of agricultural homestead property has a classification
         rate of 0.5 <br/>
<a id="pl.20.8"></a><var>20.8</var>percent of market value. The remaining property over the first tier has a classification
         rate <br/>
<a id="pl.20.9"></a><var>20.9</var>of one percent of market value. For purposes of this subdivision, the "first tier
         valuation <br/>
<a id="pl.20.10"></a><var>20.10</var>limit of agricultural homestead property" and "first tier" means the limit certified
         under <br/>
<a id="pl.20.11"></a><var>20.11</var>section 
         <statute_ref>273.11</statute_ref>, subdivision 23.<br/>
<a id="pl.20.12"></a><var>20.12</var>    (b) Class 2a agricultural land consists of parcels of property, or portions thereof,
         that <br/>
<a id="pl.20.13"></a><var>20.13</var>are agricultural land and buildings. Class 2a property has a classification rate of
         one percent <br/>
<a id="pl.20.14"></a><var>20.14</var>of market value, unless it is part of an agricultural homestead under paragraph (a).
         Class 2a <br/>
<a id="pl.20.15"></a><var>20.15</var>property must also include any property that would otherwise be classified as 2b,
         but is <br/>
<a id="pl.20.16"></a><var>20.16</var>interspersed with class 2a property, including but not limited to sloughs, wooded
         wind <br/>
<a id="pl.20.17"></a><var>20.17</var>shelters, acreage abutting ditches, ravines, rock piles, land subject to a setback
         requirement, <br/>
<a id="pl.20.18"></a><var>20.18</var>and other similar land that is impractical for the assessor to value separately from
         the rest <br/>
<a id="pl.20.19"></a><var>20.19</var>of the property or that is unlikely to be able to be sold separately from the rest
         of the property.<br/>
<a id="pl.20.20"></a><var>20.20</var>    An assessor may classify the part of a parcel described in this subdivision that is
         used <br/>
<a id="pl.20.21"></a><var>20.21</var>for agricultural purposes as class 2a and the remainder in the class appropriate to
         its use.<br/>
<a id="pl.20.22"></a><var>20.22</var>    (c) Class 2b rural vacant land consists of parcels of property, or portions thereof,
         that <br/>
<a id="pl.20.23"></a><var>20.23</var>are unplatted real estate, rural in character and not used for agricultural purposes,
         including <br/>
<a id="pl.20.24"></a><var>20.24</var>land used for growing trees for timber, lumber, and wood and wood products, that is
         not <br/>
<a id="pl.20.25"></a><var>20.25</var>improved with a structure. The presence of a minor, ancillary nonresidential structure
         as <br/>
<a id="pl.20.26"></a><var>20.26</var>defined by the commissioner of revenue does not disqualify the property from classification
         <br/>
<a id="pl.20.27"></a><var>20.27</var>under this paragraph. Any parcel of 20 acres or more improved with a structure that
         is not <br/>
<a id="pl.20.28"></a><var>20.28</var>a minor, ancillary nonresidential structure must be split-classified, and ten acres
         must be <br/>
<a id="pl.20.29"></a><var>20.29</var>assigned to the split parcel containing the structure. Class 2b property has a classification
         <br/>
<a id="pl.20.30"></a><var>20.30</var>rate of one percent of market value unless it is part of an agricultural homestead
         under <br/>
<a id="pl.20.31"></a><var>20.31</var>paragraph (a), or qualifies as class 2c under paragraph (d).<br/>
<a id="pl.20.32"></a><var>20.32</var>    (d) Class 2c managed forest land consists of no less than 20 and no more than 1,920
         <br/>
<a id="pl.20.33"></a><var>20.33</var>acres statewide per taxpayer that is being managed under a forest management plan
         that <br/>
<a id="pl.20.34"></a><var>20.34</var>meets the requirements of chapter 290C, but is not enrolled in the sustainable forest
         resource <br/>
<a id="pl.21.1"></a><var>21.1</var>management incentive program. It has a classification rate of .65 percent, provided
         that the <br/>
<a id="pl.21.2"></a><var>21.2</var>owner of the property must apply to the assessor in order for the property to initially
         qualify <br/>
<a id="pl.21.3"></a><var>21.3</var>for the reduced rate and provide the information required by the assessor to verify
         that the <br/>
<a id="pl.21.4"></a><var>21.4</var>property qualifies for the reduced rate. If the assessor receives the application
         and information <br/>
<a id="pl.21.5"></a><var>21.5</var>before May 1 in an assessment year, the property qualifies beginning with that assessment
         <br/>
<a id="pl.21.6"></a><var>21.6</var>year. If the assessor receives the application and information after April 30 in an
         assessment <br/>
<a id="pl.21.7"></a><var>21.7</var>year, the property may not qualify until the next assessment year. The commissioner
         of <br/>
<a id="pl.21.8"></a><var>21.8</var>natural resources must concur that the land is qualified. The commissioner of natural
         <br/>
<a id="pl.21.9"></a><var>21.9</var>resources shall annually provide county assessors verification information on a timely
         basis. <br/>
<a id="pl.21.10"></a><var>21.10</var>The presence of a minor, ancillary nonresidential structure as defined by the commissioner
         <br/>
<a id="pl.21.11"></a><var>21.11</var>of revenue does not disqualify the property from classification under this paragraph.<br/>
<a id="pl.21.12"></a><var>21.12</var>    (e) Agricultural land as used in this section means:<br/>
<a id="pl.21.13"></a><var>21.13</var>    (1) contiguous acreage of ten acres or more, used during the preceding year for <br/>
<a id="pl.21.14"></a><var>21.14</var>agricultural purposes; or<br/>
<a id="pl.21.15"></a><var>21.15</var>    (2) contiguous acreage used during the preceding year for an intensive livestock or
         <br/>
<a id="pl.21.16"></a><var>21.16</var>poultry confinement operation, provided that land used only for pasturing or grazing
         does <br/>
<a id="pl.21.17"></a><var>21.17</var>not qualify under this clause.<br/>
<a id="pl.21.18"></a><var>21.18</var>    "Agricultural purposes" as used in this section means the raising, cultivation, drying,
         or <br/>
<a id="pl.21.19"></a><var>21.19</var>storage of agricultural products for sale, or the storage of machinery or equipment
         used in <br/>
<a id="pl.21.20"></a><var>21.20</var>support of agricultural production by the same farm entity. For a property to be classified
         <br/>
<a id="pl.21.21"></a><var>21.21</var>as agricultural based only on the drying or storage of agricultural products, the
         products <br/>
<a id="pl.21.22"></a><var>21.22</var>being dried or stored must have been produced by the same farm entity as the entity
         operating <br/>
<a id="pl.21.23"></a><var>21.23</var>the drying or storage facility. "Agricultural purposes" also includes enrollment in
         the Reinvest <br/>
<a id="pl.21.24"></a><var>21.24</var>in Minnesota program under sections 
         <statute_ref>103F.501</statute_ref> to 
         <statute_ref>103F.535</statute_ref> or the federal Conservation <br/>
<a id="pl.21.25"></a><var>21.25</var>Reserve Program as contained in Public Law 99-198 or a similar local, state, or federal <br/>
<a id="pl.21.26"></a><var>21.26</var>conservation program if the property was classified as agricultural (i) under this
         subdivision <br/>
<a id="pl.21.27"></a><var>21.27</var>for taxes payable in 2003 because of its enrollment in a qualifying program and the
         land <br/>
<a id="pl.21.28"></a><var>21.28</var>remains enrolled or (ii) in the year prior to its enrollment. For purposes of this section, a <br/>
<a id="pl.21.29"></a><var>21.29</var>local conservation program means a program administered by a town, statutory or home
         <br/>
<a id="pl.21.30"></a><var>21.30</var>rule charter city, or county, including a watershed district, water management organization,
         <br/>
<a id="pl.21.31"></a><var>21.31</var>or soil and water conservation district, in which landowners voluntarily enroll land
         and <br/>
<a id="pl.21.32"></a><var>21.32</var>receive incentive payments in exchange for use or other restrictions placed on the
         land. <br/>
<a id="pl.21.33"></a><var>21.33</var>Agricultural classification shall not be based upon the market value of any residential
         <br/>
<a id="pl.21.34"></a><var>21.34</var>structures on the parcel or contiguous parcels under the same ownership.<br/>
<a id="pl.22.1"></a><var>22.1</var>    "Contiguous acreage," for purposes of this paragraph, means all of, or a contiguous
         <br/>
<a id="pl.22.2"></a><var>22.2</var>portion of, a tax parcel as described in section 
         <statute_ref>272.193</statute_ref>, or all of, or a contiguous portion <br/>
<a id="pl.22.3"></a><var>22.3</var>of, a set of contiguous tax parcels under that section that are owned by the same
         person.<br/>
<a id="pl.22.4"></a><var>22.4</var>    (f) Agricultural land under this section also includes:<br/>
<a id="pl.22.5"></a><var>22.5</var>    (1) contiguous acreage that is less than ten acres in size and exclusively used in
         the <br/>
<a id="pl.22.6"></a><var>22.6</var>preceding year for raising or cultivating agricultural products; or<br/>
<a id="pl.22.7"></a><var>22.7</var>    (2) contiguous acreage that contains a residence and is less than 11 acres in size,
         if the <br/>
<a id="pl.22.8"></a><var>22.8</var>contiguous acreage exclusive of the house, garage, and surrounding one acre of land
         was <br/>
<a id="pl.22.9"></a><var>22.9</var>used in the preceding year for one or more of the following three uses:<br/>
<a id="pl.22.10"></a><var>22.10</var>    (i) for an intensive grain drying or storage operation, or for intensive machinery
         or <br/>
<a id="pl.22.11"></a><var>22.11</var>equipment storage activities used to support agricultural activities on other parcels
         of property <br/>
<a id="pl.22.12"></a><var>22.12</var>operated by the same farming entity;<br/>
<a id="pl.22.13"></a><var>22.13</var>    (ii) as a nursery, provided that only those acres used intensively to produce nursery
         stock <br/>
<a id="pl.22.14"></a><var>22.14</var>are considered agricultural land; or<br/>
<a id="pl.22.15"></a><var>22.15</var>    (iii) for intensive market farming; for purposes of this paragraph, "market farming"
         <br/>
<a id="pl.22.16"></a><var>22.16</var>means the cultivation of one or more fruits or vegetables or production of animal
         or other <br/>
<a id="pl.22.17"></a><var>22.17</var>agricultural products for sale to local markets by the farmer or an organization with
         which <br/>
<a id="pl.22.18"></a><var>22.18</var>the farmer is affiliated.<br/>
<a id="pl.22.19"></a><var>22.19</var>    "Contiguous acreage," for purposes of this paragraph, means all of a tax parcel as
         <br/>
<a id="pl.22.20"></a><var>22.20</var>described in section 
         <statute_ref>272.193</statute_ref>, or all of a set of contiguous tax parcels under that section that <br/>
<a id="pl.22.21"></a><var>22.21</var>are owned by the same person.<br/>
<a id="pl.22.22"></a><var>22.22</var>    (g) Land shall be classified as agricultural even if all or a portion of the agricultural
         use <br/>
<a id="pl.22.23"></a><var>22.23</var>of that property is the leasing to, or use by another person for agricultural purposes.<br/>
<a id="pl.22.24"></a><var>22.24</var>    Classification under this subdivision is not determinative for qualifying under section
         <br/>
<statute_ref><a id="pl.22.25"></a><var>22.25</var>273.111
         </statute_ref>.<br/>
<a id="pl.22.26"></a><var>22.26</var>    (h) The property classification under this section supersedes, for property tax purposes
         <br/>
<a id="pl.22.27"></a><var>22.27</var>only, any locally administered agricultural policies or land use restrictions that
         define <br/>
<a id="pl.22.28"></a><var>22.28</var>minimum or maximum farm acreage.<br/>
<a id="pl.22.29"></a><var>22.29</var>    (i) The term "agricultural products" as used in this subdivision includes production
         for <br/>
<a id="pl.22.30"></a><var>22.30</var>sale of:<br/>
<a id="pl.23.1"></a><var>23.1</var>    (1) livestock, dairy animals, dairy products, poultry and poultry products, fur-bearing
         <br/>
<a id="pl.23.2"></a><var>23.2</var>animals, horticultural and nursery stock, fruit of all kinds, vegetables, forage,
         grains, bees, <br/>
<a id="pl.23.3"></a><var>23.3</var>and apiary products by the owner;<br/>
<a id="pl.23.4"></a><var>23.4</var>    (2) fish bred for sale and consumption if the fish breeding occurs on land zoned for
         <br/>
<a id="pl.23.5"></a><var>23.5</var>agricultural use;<br/>
<a id="pl.23.6"></a><var>23.6</var>    (3) the commercial boarding of horses, which may include related horse training and
         <br/>
<a id="pl.23.7"></a><var>23.7</var>riding instruction, if the boarding is done on property that is also used for raising
         pasture <br/>
<a id="pl.23.8"></a><var>23.8</var>to graze horses or raising or cultivating other agricultural products as defined in
         clause (1);<br/>
<a id="pl.23.9"></a><var>23.9</var>    (4) property which is owned and operated by nonprofit organizations used for equestrian
         <br/>
<a id="pl.23.10"></a><var>23.10</var>activities, excluding racing;<br/>
<a id="pl.23.11"></a><var>23.11</var>    (5) game birds and waterfowl bred and raised (i) on a game farm licensed under section
         <br/>
<statute_ref><a id="pl.23.12"></a><var>23.12</var>97A.105
         </statute_ref>, provided that the annual licensing report to the Department of Natural Resources,
         <br/>
<a id="pl.23.13"></a><var>23.13</var>which must be submitted annually by March 30 to the assessor, indicates that at least
         500 <br/>
<a id="pl.23.14"></a><var>23.14</var>birds were raised or used for breeding stock on the property during the preceding
         year and <br/>
<a id="pl.23.15"></a><var>23.15</var>that the owner provides a copy of the owner's most recent schedule F; or (ii) for
         use on a <br/>
<a id="pl.23.16"></a><var>23.16</var>shooting preserve licensed under section 
         <statute_ref>97A.115</statute_ref>;<br/>
<a id="pl.23.17"></a><var>23.17</var>    (6) insects primarily bred to be used as food for animals;<br/>
<a id="pl.23.18"></a><var>23.18</var>    (7) trees, grown for sale as a crop, including short rotation woody crops, and not
         sold <br/>
<a id="pl.23.19"></a><var>23.19</var>for timber, lumber, wood, or wood products; and<br/>
<a id="pl.23.20"></a><var>23.20</var>    (8) maple syrup taken from trees grown by a person licensed by the Minnesota <br/>
<a id="pl.23.21"></a><var>23.21</var>Department of Agriculture under chapter 28A as a food processor.<br/>
<a id="pl.23.22"></a><var>23.22</var>    (j) If a parcel used for agricultural purposes is also used for commercial or industrial
         <br/>
<a id="pl.23.23"></a><var>23.23</var>purposes, including but not limited to:<br/>
<a id="pl.23.24"></a><var>23.24</var>    (1) wholesale and retail sales;<br/>
<a id="pl.23.25"></a><var>23.25</var>    (2) processing of raw agricultural products or other goods;<br/>
<a id="pl.23.26"></a><var>23.26</var>    (3) warehousing or storage of processed goods; and<br/>
<a id="pl.23.27"></a><var>23.27</var>    (4) office facilities for the support of the activities enumerated in clauses (1),
         (2), and <br/>
<a id="pl.23.28"></a><var>23.28</var>(3),<br/>
<a id="pl.23.29"></a><var>23.29</var>the assessor shall classify the part of the parcel used for agricultural purposes
         as class 1b, <br/>
<a id="pl.23.30"></a><var>23.30</var>2a, or 2b, whichever is appropriate, and the remainder in the class appropriate to
         its use. <br/>
<a id="pl.23.31"></a><var>23.31</var>The grading, sorting, and packaging of raw agricultural products for first sale is
         considered <br/>
<a id="pl.23.32"></a><var>23.32</var>an agricultural purpose. A greenhouse or other building where horticultural or nursery
         <br/>
<a id="pl.24.1"></a><var>24.1</var>products are grown that is also used for the conduct of retail sales must be classified
         as <br/>
<a id="pl.24.2"></a><var>24.2</var>agricultural if it is primarily used for the growing of horticultural or nursery products
         from <br/>
<a id="pl.24.3"></a><var>24.3</var>seed, cuttings, or roots and occasionally as a showroom for the retail sale of those
         products. <br/>
<a id="pl.24.4"></a><var>24.4</var>Use of a greenhouse or building only for the display of already grown horticultural
         or nursery <br/>
<a id="pl.24.5"></a><var>24.5</var>products does not qualify as an agricultural purpose.<br/>
<a id="pl.24.6"></a><var>24.6</var>    (k) The assessor shall determine and list separately on the records the market value
         of <br/>
<a id="pl.24.7"></a><var>24.7</var>the homestead dwelling and the one acre of land on which that dwelling is located.
         If any <br/>
<a id="pl.24.8"></a><var>24.8</var>farm buildings or structures are located on this homesteaded acre of land, their market
         value <br/>
<a id="pl.24.9"></a><var>24.9</var>shall not be included in this separate determination.<br/>
<a id="pl.24.10"></a><var>24.10</var>    (l) Class 2d airport landing area consists of a landing area or public access area
         of a <br/>
<a id="pl.24.11"></a><var>24.11</var>privately owned public use airport. It has a classification rate of one percent of
         market value. <br/>
<a id="pl.24.12"></a><var>24.12</var>To qualify for classification under this paragraph, a privately owned public use airport
         must <br/>
<a id="pl.24.13"></a><var>24.13</var>be licensed as a public airport under section 
         <statute_ref>360.018</statute_ref>. For purposes of this paragraph, "landing <br/>
<a id="pl.24.14"></a><var>24.14</var>area" means that part of a privately owned public use airport properly cleared, regularly
         <br/>
<a id="pl.24.15"></a><var>24.15</var>maintained, and made available to the public for use by aircraft and includes runways,
         <br/>
<a id="pl.24.16"></a><var>24.16</var>taxiways, aprons, and sites upon which are situated landing or navigational aids.
         A landing <br/>
<a id="pl.24.17"></a><var>24.17</var>area also includes land underlying both the primary surface and the approach surfaces
         that <br/>
<a id="pl.24.18"></a><var>24.18</var>comply with all of the following:<br/>
<a id="pl.24.19"></a><var>24.19</var>    (i) the land is properly cleared and regularly maintained for the primary purposes
         of the <br/>
<a id="pl.24.20"></a><var>24.20</var>landing, taking off, and taxiing of aircraft; but that portion of the land that contains
         facilities <br/>
<a id="pl.24.21"></a><var>24.21</var>for servicing, repair, or maintenance of aircraft is not included as a landing area;<br/>
<a id="pl.24.22"></a><var>24.22</var>    (ii) the land is part of the airport property; and<br/>
<a id="pl.24.23"></a><var>24.23</var>    (iii) the land is not used for commercial or residential purposes.<br/>
<a id="pl.24.24"></a><var>24.24</var>The land contained in a landing area under this paragraph must be described and certified
         <br/>
<a id="pl.24.25"></a><var>24.25</var>by the commissioner of transportation. The certification is effective until it is
         modified, or <br/>
<a id="pl.24.26"></a><var>24.26</var>until the airport or landing area no longer meets the requirements of this paragraph.
         For <br/>
<a id="pl.24.27"></a><var>24.27</var>purposes of this paragraph, "public access area" means property used as an aircraft
         parking <br/>
<a id="pl.24.28"></a><var>24.28</var>ramp, apron, or storage hangar, or an arrival and departure building in connection
         with the <br/>
<a id="pl.24.29"></a><var>24.29</var>airport.<br/>
<a id="pl.24.30"></a><var>24.30</var>    (m) Class 2e consists of land with a commercial aggregate deposit that is not actively
         <br/>
<a id="pl.24.31"></a><var>24.31</var>being mined and is not otherwise classified as class 2a or 2b, provided that the land
         is not <br/>
<a id="pl.24.32"></a><var>24.32</var>located in a county that has elected to opt-out of the aggregate preservation program
         as <br/>
<a id="pl.24.33"></a><var>24.33</var>provided in section 
         <statute_ref>273.1115, subdivision 6</statute_ref>. It has a classification rate of one percent of <br/>
<a id="pl.24.34"></a><var>24.34</var>market value. To qualify for classification under this paragraph, the property must
         be at <br/>
<a id="pl.25.1"></a><var>25.1</var>least ten contiguous acres in size and the owner of the property must record with
         the county <br/>
<a id="pl.25.2"></a><var>25.2</var>recorder of the county in which the property is located an affidavit containing:<br/>
<a id="pl.25.3"></a><var>25.3</var>    (1) a legal description of the property;<br/>
<a id="pl.25.4"></a><var>25.4</var>    (2) a disclosure that the property contains a commercial aggregate deposit that is
         not <br/>
<a id="pl.25.5"></a><var>25.5</var>actively being mined but is present on the entire parcel enrolled;<br/>
<a id="pl.25.6"></a><var>25.6</var>    (3) documentation that the conditional use under the county or local zoning ordinance
         <br/>
<a id="pl.25.7"></a><var>25.7</var>of this property is for mining; and<br/>
<a id="pl.25.8"></a><var>25.8</var>    (4) documentation that a permit has been issued by the local unit of government or
         the <br/>
<a id="pl.25.9"></a><var>25.9</var>mining activity is allowed under local ordinance. The disclosure must include a statement
         <br/>
<a id="pl.25.10"></a><var>25.10</var>from a registered professional geologist, engineer, or soil scientist delineating
         the deposit <br/>
<a id="pl.25.11"></a><var>25.11</var>and certifying that it is a commercial aggregate deposit.<br/>
<a id="pl.25.12"></a><var>25.12</var>    For purposes of this section and section 
         <statute_ref>273.1115</statute_ref>, "commercial aggregate deposit" <br/>
<a id="pl.25.13"></a><var>25.13</var>means a deposit that will yield crushed stone or sand and gravel that is suitable
         for use as <br/>
<a id="pl.25.14"></a><var>25.14</var>a construction aggregate; and "actively mined" means the removal of top soil and overburden
         <br/>
<a id="pl.25.15"></a><var>25.15</var>in preparation for excavation or excavation of a commercial deposit.<br/>
<a id="pl.25.16"></a><var>25.16</var>    (n) When any portion of the property under this subdivision or subdivision 22 begins
         to <br/>
<a id="pl.25.17"></a><var>25.17</var>be actively mined, the owner must file a supplemental affidavit within 60 days from
         the <br/>
<a id="pl.25.18"></a><var>25.18</var>day any aggregate is removed stating the number of acres of the property that is actively
         <br/>
<a id="pl.25.19"></a><var>25.19</var>being mined. The acres actively being mined must be (1) valued and classified under
         <br/>
<a id="pl.25.20"></a><var>25.20</var>subdivision 24 in the next subsequent assessment year, and (2) removed from the aggregate
         <br/>
<a id="pl.25.21"></a><var>25.21</var>resource preservation property tax program under section 
         <statute_ref>273.1115</statute_ref>, if the land was enrolled <br/>
<a id="pl.25.22"></a><var>25.22</var>in that program. Copies of the original affidavit and all supplemental affidavits
         must be <br/>
<a id="pl.25.23"></a><var>25.23</var>filed with the county assessor, the local zoning administrator, and the Department
         of Natural <br/>
<a id="pl.25.24"></a><var>25.24</var>Resources, Division of Land and Minerals. A supplemental affidavit must be filed each
         <br/>
<a id="pl.25.25"></a><var>25.25</var>time a subsequent portion of the property is actively mined, provided that the minimum
         <br/>
<a id="pl.25.26"></a><var>25.26</var>acreage change is five acres, even if the actual mining activity constitutes less
         than five <br/>
<a id="pl.25.27"></a><var>25.27</var>acres.<br/>
<a id="pl.25.28"></a><var>25.28</var>    (o) The definitions prescribed by the commissioner under paragraphs (c) and (d) are
         not <br/>
<a id="pl.25.29"></a><var>25.29</var>rules and are exempt from the rulemaking provisions of chapter 14, and the provisions
         in <br/>
<a id="pl.25.30"></a><var>25.30</var>section 
         <statute_ref>14.386</statute_ref> concerning exempt rules do not apply.<br/>
<a id="pl.25.31"></a><var>25.31</var><b>EFFECTIVE DATE.</b>This section is effective beginning with assessment year 2018.<br/>
<br/>
<a id="bill.1.15.0"></a><a id="pl.26.1"></a><var>26.1</var>    Sec. 15. Minnesota Statutes 2016, section 273.13, subdivision 25, is amended to read:<br/>
<a id="pl.26.2"></a><var>26.2</var>    Subd. 25. <b>Class 4.</b> (a) Class 4a is residential real estate containing four or more units <br/>
<a id="pl.26.3"></a><var>26.3</var>and used or held for use by the owner or by the tenants or lessees of the owner as
         a residence <br/>
<a id="pl.26.4"></a><var>26.4</var>for rental periods of 30 days or more, excluding property qualifying for class 4d.
         Class 4a <br/>
<a id="pl.26.5"></a><var>26.5</var>also includes hospitals licensed under sections 
         <statute_ref>144.50</statute_ref> to 
         <statute_ref>144.56</statute_ref>, other than hospitals exempt <br/>
<a id="pl.26.6"></a><var>26.6</var>under section 
         <statute_ref>272.02</statute_ref>, and contiguous property used for hospital purposes, without regard <br/>
<a id="pl.26.7"></a><var>26.7</var>to whether the property has been platted or subdivided. The market value of class
         4a property <br/>
<a id="pl.26.8"></a><var>26.8</var>has a classification rate of 1.25 percent.<br/>
<a id="pl.26.9"></a><var>26.9</var>    (b) Class 4b includes:<br/>
<a id="pl.26.10"></a><var>26.10</var>    (1) residential real estate containing less than four units that does not qualify
         as class <br/>
<a id="pl.26.11"></a><var>26.11</var>4bb, other than seasonal residential recreational property;<br/>
<a id="pl.26.12"></a><var>26.12</var>    (2) manufactured homes not classified under any other provision;<br/>
<a id="pl.26.13"></a><var>26.13</var>    (3) a dwelling, garage, and surrounding one acre of property on a nonhomestead farm
         <br/>
<a id="pl.26.14"></a><var>26.14</var>classified under subdivision 23, paragraph (b) containing two or three units; and<br/>
<a id="pl.26.15"></a><var>26.15</var>    (4) unimproved property that is classified residential as determined under subdivision
         <br/>
<a id="pl.26.16"></a><var>26.16</var>33.<br/>
<a id="pl.26.17"></a><var>26.17</var>    The market value of class 4b property has a classification rate of 1.25 percent.<br/>
<a id="pl.26.18"></a><var>26.18</var>    (c) Class 4bb includes:<br/>
<a id="pl.26.19"></a><var>26.19</var>    (1) nonhomestead residential real estate containing one unit, other than seasonal <br/>
<a id="pl.26.20"></a><var>26.20</var>residential recreational property, and a single family dwelling, garage,;<br/>
<a id="pl.26.21"></a><var>26.21</var>    (2) single-family dwellings including garages and the surrounding one acre of property <br/>
<a id="pl.26.22"></a><var>26.22</var>on a nonhomestead farm farms classified under subdivision 23, paragraph (b); and<br/>
<a id="pl.26.23"></a><var>26.23</var>    (3) condominium-type storage units having individual legal descriptions that are not
         <br/>
<a id="pl.26.24"></a><var>26.24</var>used for commercial purposes.<br/>
<a id="pl.26.25"></a><var>26.25</var>    Class 4bb property has the same classification rates as class 1a property under subdivision
         <br/>
<a id="pl.26.26"></a><var>26.26</var>22.<br/>
<a id="pl.26.27"></a><var>26.27</var>    Property that has been classified as seasonal residential recreational property at
         any time <br/>
<a id="pl.26.28"></a><var>26.28</var>during which it has been owned by the current owner or spouse of the current owner
         does <br/>
<a id="pl.26.29"></a><var>26.29</var>not qualify for class 4bb.<br/>
<a id="pl.26.30"></a><var>26.30</var>    (d) Class 4c property includes:<br/>
<a id="pl.27.1"></a><var>27.1</var>    (1) except as provided in subdivision 22, paragraph (c), real and personal property
         <br/>
<a id="pl.27.2"></a><var>27.2</var>devoted to commercial temporary and seasonal residential occupancy for recreation
         purposes, <br/>
<a id="pl.27.3"></a><var>27.3</var>for not more than 250 days in the year preceding the year of assessment. For purposes
         of <br/>
<a id="pl.27.4"></a><var>27.4</var>this clause, property is devoted to a commercial purpose on a specific day if any
         portion of <br/>
<a id="pl.27.5"></a><var>27.5</var>the property is used for residential occupancy, and a fee is charged for residential
         occupancy. <br/>
<a id="pl.27.6"></a><var>27.6</var>Class 4c property under this clause must contain three or more rental units. A "rental
         unit" <br/>
<a id="pl.27.7"></a><var>27.7</var>is defined as a cabin, condominium, townhouse, sleeping room, or individual camping
         site <br/>
<a id="pl.27.8"></a><var>27.8</var>equipped with water and electrical hookups for recreational vehicles. A camping pad
         offered <br/>
<a id="pl.27.9"></a><var>27.9</var>for rent by a property that otherwise qualifies for class 4c under this clause is
         also class 4c <br/>
<a id="pl.27.10"></a><var>27.10</var>under this clause regardless of the term of the rental agreement, as long as the use
         of the <br/>
<a id="pl.27.11"></a><var>27.11</var>camping pad does not exceed 250 days. In order for a property to be classified under
         this <br/>
<a id="pl.27.12"></a><var>27.12</var>clause, either (i) the business located on the property must provide recreational
         activities, <br/>
<a id="pl.27.13"></a><var>27.13</var>at least 40 percent of the annual gross lodging receipts related to the property must
         be from <br/>
<a id="pl.27.14"></a><var>27.14</var>business conducted during 90 consecutive days, and either (A) at least 60 percent
         of all paid <br/>
<a id="pl.27.15"></a><var>27.15</var>bookings by lodging guests during the year must be for periods of at least two consecutive
         <br/>
<a id="pl.27.16"></a><var>27.16</var>nights; or (B) at least 20 percent of the annual gross receipts must be from charges
         for <br/>
<a id="pl.27.17"></a><var>27.17</var>providing recreational activities, or (ii) the business must contain 20 or fewer rental
         units, <br/>
<a id="pl.27.18"></a><var>27.18</var>and must be located in a township or a city with a population of 2,500 or less located
         outside <br/>
<a id="pl.27.19"></a><var>27.19</var>the metropolitan area, as defined under section 
         <statute_ref>473.121</statute_ref>, subdivision 2, that contains a portion <br/>
<a id="pl.27.20"></a><var>27.20</var>of a state trail administered by the Department of Natural Resources. For purposes
         of item <br/>
<a id="pl.27.21"></a><var>27.21</var>(i)(A), a paid booking of five or more nights shall be counted as two bookings. Class
         4c <br/>
<a id="pl.27.22"></a><var>27.22</var>property also includes commercial use real property used exclusively for recreational
         <br/>
<a id="pl.27.23"></a><var>27.23</var>purposes in conjunction with other class 4c property classified under this clause
         and devoted <br/>
<a id="pl.27.24"></a><var>27.24</var>to temporary and seasonal residential occupancy for recreational purposes, up to a
         total of <br/>
<a id="pl.27.25"></a><var>27.25</var>two acres, provided the property is not devoted to commercial recreational use for
         more <br/>
<a id="pl.27.26"></a><var>27.26</var>than 250 days in the year preceding the year of assessment and is located within two
         miles <br/>
<a id="pl.27.27"></a><var>27.27</var>of the class 4c property with which it is used. In order for a property to qualify
         for <br/>
<a id="pl.27.28"></a><var>27.28</var>classification under this clause, the owner must submit a declaration to the assessor
         <br/>
<a id="pl.27.29"></a><var>27.29</var>designating the cabins or units occupied for 250 days or less in the year preceding
         the year <br/>
<a id="pl.27.30"></a><var>27.30</var>of assessment by January 15 of the assessment year. Those cabins or units and a proportionate
         <br/>
<a id="pl.27.31"></a><var>27.31</var>share of the land on which they are located must be designated class 4c under this
         clause <br/>
<a id="pl.27.32"></a><var>27.32</var>as otherwise provided. The remainder of the cabins or units and a proportionate share
         of <br/>
<a id="pl.27.33"></a><var>27.33</var>the land on which they are located will be designated as class 3a. The owner of property
         <br/>
<a id="pl.27.34"></a><var>27.34</var>desiring designation as class 4c property under this clause must provide guest registers
         or <br/>
<a id="pl.27.35"></a><var>27.35</var>other records demonstrating that the units for which class 4c designation is sought
         were not <br/>
<a id="pl.27.36"></a><var>27.36</var>occupied for more than 250 days in the year preceding the assessment if so requested.
         The <br/>
<a id="pl.28.1"></a><var>28.1</var>portion of a property operated as a (1) restaurant, (2) bar, (3) gift shop, (4) conference
         center <br/>
<a id="pl.28.2"></a><var>28.2</var>or meeting room, and (5) other nonresidential facility operated on a commercial basis
         not <br/>
<a id="pl.28.3"></a><var>28.3</var>directly related to temporary and seasonal residential occupancy for recreation purposes
         <br/>
<a id="pl.28.4"></a><var>28.4</var>does not qualify for class 4c. For the purposes of this paragraph, "recreational activities"
         <br/>
<a id="pl.28.5"></a><var>28.5</var>means renting ice fishing houses, boats and motors, snowmobiles, downhill or cross-country
         <br/>
<a id="pl.28.6"></a><var>28.6</var>ski equipment; providing marina services, launch services, or guide services; or selling
         bait <br/>
<a id="pl.28.7"></a><var>28.7</var>and fishing tackle;<br/>
<a id="pl.28.8"></a><var>28.8</var>    (2) qualified property used as a golf course if:<br/>
<a id="pl.28.9"></a><var>28.9</var>    (i) it is open to the public on a daily fee basis. It may charge membership fees or
         dues, <br/>
<a id="pl.28.10"></a><var>28.10</var>but a membership fee may not be required in order to use the property for golfing,
         and its <br/>
<a id="pl.28.11"></a><var>28.11</var>green fees for golfing must be comparable to green fees typically charged by municipal
         <br/>
<a id="pl.28.12"></a><var>28.12</var>courses; and<br/>
<a id="pl.28.13"></a><var>28.13</var>    (ii) it meets the requirements of section 
         <statute_ref>273.112, subdivision 3</statute_ref>, paragraph (d).<br/>
<a id="pl.28.14"></a><var>28.14</var>    A structure used as a clubhouse, restaurant, or place of refreshment in conjunction
         with <br/>
<a id="pl.28.15"></a><var>28.15</var>the golf course is classified as class 3a property;<br/>
<a id="pl.28.16"></a><var>28.16</var>    (3) real property up to a maximum of three acres of land owned and used by a nonprofit
         <br/>
<a id="pl.28.17"></a><var>28.17</var>community service oriented organization and not used for residential purposes on either
         a <br/>
<a id="pl.28.18"></a><var>28.18</var>temporary or permanent basis, provided that:<br/>
<a id="pl.28.19"></a><var>28.19</var>    (i) the property is not used for a revenue-producing activity for more than six days
         in <br/>
<a id="pl.28.20"></a><var>28.20</var>the calendar year preceding the year of assessment; or<br/>
<a id="pl.28.21"></a><var>28.21</var>    (ii) the organization makes annual charitable contributions and donations at least
         equal <br/>
<a id="pl.28.22"></a><var>28.22</var>to the property's previous year's property taxes and the property is allowed to be
         used for <br/>
<a id="pl.28.23"></a><var>28.23</var>public and community meetings or events for no charge, as appropriate to the size
         of the <br/>
<a id="pl.28.24"></a><var>28.24</var>facility.<br/>
<a id="pl.28.25"></a><var>28.25</var>    For purposes of this clause:<br/>
<a id="pl.28.26"></a><var>28.26</var>    (A) "charitable contributions and donations" has the same meaning as lawful gambling
         <br/>
<a id="pl.28.27"></a><var>28.27</var>purposes under section 
         <statute_ref>349.12, subdivision 25</statute_ref>, excluding those purposes relating to the <br/>
<a id="pl.28.28"></a><var>28.28</var>payment of taxes, assessments, fees, auditing costs, and utility payments;<br/>
<a id="pl.28.29"></a><var>28.29</var>    (B) "property taxes" excludes the state general tax;<br/>
<a id="pl.28.30"></a><var>28.30</var>    (C) a "nonprofit community service oriented organization" means any corporation, <br/>
<a id="pl.28.31"></a><var>28.31</var>society, association, foundation, or institution organized and operated exclusively
         for <br/>
<a id="pl.28.32"></a><var>28.32</var>charitable, religious, fraternal, civic, or educational purposes, and which is exempt
         from <br/>
<a id="pl.29.1"></a><var>29.1</var>federal income taxation pursuant to section 501(c)(3), (8), (10), or (19) of the Internal
         <br/>
<a id="pl.29.2"></a><var>29.2</var>Revenue Code; and<br/>
<a id="pl.29.3"></a><var>29.3</var>    (D) "revenue-producing activities" shall include but not be limited to property or
         that <br/>
<a id="pl.29.4"></a><var>29.4</var>portion of the property that is used as an on-sale intoxicating liquor or 3.2 percent
         malt <br/>
<a id="pl.29.5"></a><var>29.5</var>liquor establishment licensed under chapter 340A, a restaurant open to the public,
         bowling <br/>
<a id="pl.29.6"></a><var>29.6</var>alley, a retail store, gambling conducted by organizations licensed under chapter
         349, an <br/>
<a id="pl.29.7"></a><var>29.7</var>insurance business, or office or other space leased or rented to a lessee who conducts
         a <br/>
<a id="pl.29.8"></a><var>29.8</var>for-profit enterprise on the premises.<br/>
<a id="pl.29.9"></a><var>29.9</var>    Any portion of the property not qualifying under either item (i) or (ii) is class
         3a. The <br/>
<a id="pl.29.10"></a><var>29.10</var>use of the property for social events open exclusively to members and their guests
         for periods <br/>
<a id="pl.29.11"></a><var>29.11</var>of less than 24 hours, when an admission is not charged nor any revenues are received
         by <br/>
<a id="pl.29.12"></a><var>29.12</var>the organization shall not be considered a revenue-producing activity.<br/>
<a id="pl.29.13"></a><var>29.13</var>    The organization shall maintain records of its charitable contributions and donations
         <br/>
<a id="pl.29.14"></a><var>29.14</var>and of public meetings and events held on the property and make them available upon
         <br/>
<a id="pl.29.15"></a><var>29.15</var>request any time to the assessor to ensure eligibility. An organization meeting the
         requirement <br/>
<a id="pl.29.16"></a><var>29.16</var>under item (ii) must file an application by May 1 with the assessor for eligibility
         for the <br/>
<a id="pl.29.17"></a><var>29.17</var>current year's assessment. The commissioner shall prescribe a uniform application
         form <br/>
<a id="pl.29.18"></a><var>29.18</var>and instructions;<br/>
<a id="pl.29.19"></a><var>29.19</var>    (4) postsecondary student housing of not more than one acre of land that is owned
         by a <br/>
<a id="pl.29.20"></a><var>29.20</var>nonprofit corporation organized under chapter 317A and is used exclusively by a student
         <br/>
<a id="pl.29.21"></a><var>29.21</var>cooperative, sorority, or fraternity for on-campus housing or housing located within
         two <br/>
<a id="pl.29.22"></a><var>29.22</var>miles of the border of a college campus;<br/>
<a id="pl.29.23"></a><var>29.23</var>    (5)(i) manufactured home parks as defined in section 
         <statute_ref>327.14, subdivision 3</statute_ref>, excluding <br/>
<a id="pl.29.24"></a><var>29.24</var>manufactured home parks described in section 
         <statute_ref>273.124, subdivision 3a</statute_ref>, and (ii) manufactured <br/>
<a id="pl.29.25"></a><var>29.25</var>home parks as defined in section 
         <statute_ref>327.14, subdivision 3</statute_ref>, that are described in section 
         <statute_ref>273.124, <br/>
<a id="pl.29.26"></a><var>29.26</var>subdivision 3a
         </statute_ref>;<br/>
<a id="pl.29.27"></a><var>29.27</var>    (6) real property that is actively and exclusively devoted to indoor fitness, health,
         social, <br/>
<a id="pl.29.28"></a><var>29.28</var>recreational, and related uses, is owned and operated by a not-for-profit corporation,
         and is <br/>
<a id="pl.29.29"></a><var>29.29</var>located within the metropolitan area as defined in section 
         <statute_ref>473.121, subdivision 2</statute_ref>;<br/>
<a id="pl.29.30"></a><var>29.30</var>    (7) a leased or privately owned noncommercial aircraft storage hangar not exempt under
         <br/>
<a id="pl.29.31"></a><var>29.31</var>section 
         <statute_ref>272.01, subdivision 2</statute_ref>, and the land on which it is located, provided that:<br/>
<a id="pl.29.32"></a><var>29.32</var>    (i) the land is on an airport owned or operated by a city, town, county, Metropolitan
         <br/>
<a id="pl.29.33"></a><var>29.33</var>Airports Commission, or group thereof; and<br/>
<a id="pl.30.1"></a><var>30.1</var>    (ii) the land lease, or any ordinance or signed agreement restricting the use of the
         leased <br/>
<a id="pl.30.2"></a><var>30.2</var>premise, prohibits commercial activity performed at the hangar.<br/>
<a id="pl.30.3"></a><var>30.3</var>    If a hangar classified under this clause is sold after June 30, 2000, a bill of sale
         must be <br/>
<a id="pl.30.4"></a><var>30.4</var>filed by the new owner with the assessor of the county where the property is located
         within <br/>
<a id="pl.30.5"></a><var>30.5</var>60 days of the sale;<br/>
<a id="pl.30.6"></a><var>30.6</var>    (8) a privately owned noncommercial aircraft storage hangar not exempt under section
         <br/>
<statute_ref><a id="pl.30.7"></a><var>30.7</var>272.01, subdivision 2
         </statute_ref>, and the land on which it is located, provided that:<br/>
<a id="pl.30.8"></a><var>30.8</var>    (i) the land abuts a public airport; and<br/>
<a id="pl.30.9"></a><var>30.9</var>    (ii) the owner of the aircraft storage hangar provides the assessor with a signed
         agreement <br/>
<a id="pl.30.10"></a><var>30.10</var>restricting the use of the premises, prohibiting commercial use or activity performed
         at the <br/>
<a id="pl.30.11"></a><var>30.11</var>hangar; and<br/>
<a id="pl.30.12"></a><var>30.12</var>    (9) residential real estate, a portion of which is used by the owner for homestead
         purposes, <br/>
<a id="pl.30.13"></a><var>30.13</var>and that is also a place of lodging, if all of the following criteria are met:<br/>
<a id="pl.30.14"></a><var>30.14</var>    (i) rooms are provided for rent to transient guests that generally stay for periods
         of 14 <br/>
<a id="pl.30.15"></a><var>30.15</var>or fewer days;<br/>
<a id="pl.30.16"></a><var>30.16</var>    (ii) meals are provided to persons who rent rooms, the cost of which is incorporated
         in <br/>
<a id="pl.30.17"></a><var>30.17</var>the basic room rate;<br/>
<a id="pl.30.18"></a><var>30.18</var>    (iii) meals are not provided to the general public except for special events on fewer
         than <br/>
<a id="pl.30.19"></a><var>30.19</var>seven days in the calendar year preceding the year of the assessment; and<br/>
<a id="pl.30.20"></a><var>30.20</var>    (iv) the owner is the operator of the property.<br/>
<a id="pl.30.21"></a><var>30.21</var>    The market value subject to the 4c classification under this clause is limited to
         five rental <br/>
<a id="pl.30.22"></a><var>30.22</var>units. Any rental units on the property in excess of five, must be valued and assessed
         as <br/>
<a id="pl.30.23"></a><var>30.23</var>class 3a. The portion of the property used for purposes of a homestead by the owner
         must <br/>
<a id="pl.30.24"></a><var>30.24</var>be classified as class 1a property under subdivision 22;<br/>
<a id="pl.30.25"></a><var>30.25</var>    (10) real property up to a maximum of three acres and operated as a restaurant as
         defined <br/>
<a id="pl.30.26"></a><var>30.26</var>under section 
         <statute_ref>157.15, subdivision 12</statute_ref>, provided it: (i) is located on a lake as defined under <br/>
<a id="pl.30.27"></a><var>30.27</var>section 
         <statute_ref>103G.005, subdivision 15</statute_ref>, paragraph (a), clause (3); and (ii) is either devoted to <br/>
<a id="pl.30.28"></a><var>30.28</var>commercial purposes for not more than 250 consecutive days, or receives at least 60
         percent <br/>
<a id="pl.30.29"></a><var>30.29</var>of its annual gross receipts from business conducted during four consecutive months.
         Gross <br/>
<a id="pl.30.30"></a><var>30.30</var>receipts from the sale of alcoholic beverages must be included in determining the
         property's <br/>
<a id="pl.30.31"></a><var>30.31</var>qualification under item (ii). The property's primary business must be as a restaurant
         and <br/>
<a id="pl.30.32"></a><var>30.32</var>not as a bar. Gross receipts from gift shop sales located on the premises must be
         excluded. <br/>
<a id="pl.31.1"></a><var>31.1</var>Owners of real property desiring 4c classification under this clause must submit an
         annual <br/>
<a id="pl.31.2"></a><var>31.2</var>declaration to the assessor by February 1 of the current assessment year, based on
         the <br/>
<a id="pl.31.3"></a><var>31.3</var>property's relevant information for the preceding assessment year;<br/>
<a id="pl.31.4"></a><var>31.4</var>(11) lakeshore and riparian property and adjacent land, not to exceed six acres, used
         as <br/>
<a id="pl.31.5"></a><var>31.5</var>a marina, as defined in section 
         <statute_ref>86A.20, subdivision 5</statute_ref>, which is made accessible to the public <br/>
<a id="pl.31.6"></a><var>31.6</var>and devoted to recreational use for marina services. The marina owner must annually
         provide <br/>
<a id="pl.31.7"></a><var>31.7</var>evidence to the assessor that it provides services, including lake or river access
         to the public <br/>
<a id="pl.31.8"></a><var>31.8</var>by means of an access ramp or other facility that is either located on the property
         of the <br/>
<a id="pl.31.9"></a><var>31.9</var>marina or at a publicly owned site that abuts the property of the marina. No more
         than 800 <br/>
<a id="pl.31.10"></a><var>31.10</var>feet of lakeshore may be included in this classification. Buildings used in conjunction
         with <br/>
<a id="pl.31.11"></a><var>31.11</var>a marina for marina services, including but not limited to buildings used to provide
         food <br/>
<a id="pl.31.12"></a><var>31.12</var>and beverage services, fuel, boat repairs, or the sale of bait or fishing tackle,
         are classified <br/>
<a id="pl.31.13"></a><var>31.13</var>as class 3a property; and<br/>
<a id="pl.31.14"></a><var>31.14</var>(12) real and personal property devoted to noncommercial temporary and seasonal <br/>
<a id="pl.31.15"></a><var>31.15</var>residential occupancy for recreation purposes.<br/>
<a id="pl.31.16"></a><var>31.16</var>    Class 4c property has a classification rate of 1.5 percent of market value, except
         that (i) <br/>
<a id="pl.31.17"></a><var>31.17</var>each parcel of noncommercial seasonal residential recreational property under clause
         (12) <br/>
<a id="pl.31.18"></a><var>31.18</var>has the same classification rates as class 4bb property, (ii) manufactured home parks
         assessed <br/>
<a id="pl.31.19"></a><var>31.19</var>under clause (5), item (i), have the same classification rate as class 4b property,
         and the <br/>
<a id="pl.31.20"></a><var>31.20</var>market value of manufactured home parks assessed under clause (5), item (ii), has
         a <br/>
<a id="pl.31.21"></a><var>31.21</var>classification rate of 0.75 percent if more than 50 percent of the lots in the park
         are occupied <br/>
<a id="pl.31.22"></a><var>31.22</var>by shareholders in the cooperative corporation or association and a classification
         rate of <br/>
<a id="pl.31.23"></a><var>31.23</var>one percent if 50 percent or less of the lots are so occupied, (iii) commercial-use
         seasonal <br/>
<a id="pl.31.24"></a><var>31.24</var>residential recreational property and marina recreational land as described in clause
         (11), <br/>
<a id="pl.31.25"></a><var>31.25</var>has a classification rate of one percent for the first $500,000 of market value, and
         1.25 <br/>
<a id="pl.31.26"></a><var>31.26</var>percent for the remaining market value, (iv) the market value of property described
         in clause <br/>
<a id="pl.31.27"></a><var>31.27</var>(4) has a classification rate of one percent, (v) the market value of property described
         in <br/>
<a id="pl.31.28"></a><var>31.28</var>clauses (2), (6), and (10) has a classification rate of 1.25 percent, and (vi) that portion of <br/>
<a id="pl.31.29"></a><var>31.29</var>the market value of property in clause (9) qualifying for class 4c property has a
         classification <br/>
<a id="pl.31.30"></a><var>31.30</var>rate of 1.25 percent, and (vii) property qualifying for classification under clause (3) that is <br/>
<a id="pl.31.31"></a><var>31.31</var>owned or operated by a congressionally chartered veterans organization has a classification
         <br/>
<a id="pl.31.32"></a><var>31.32</var>rate of one percent. The commissioner of veterans affairs must provide a list of <br/>
<a id="pl.31.33"></a><var>31.33</var>congressionally chartered veterans organizations to the commissioner of revenue by
         June <br/>
<a id="pl.31.34"></a><var>31.34</var>30, 2017, and by January 1, 2018, and each year thereafter.<br/>
<a id="pl.32.1"></a><var>32.1</var>    (e) Class 4d property is qualifying low-income rental housing certified to the assessor
         <br/>
<a id="pl.32.2"></a><var>32.2</var>by the Housing Finance Agency under section 
         <statute_ref>273.128, subdivision 3</statute_ref>. If only a portion of <br/>
<a id="pl.32.3"></a><var>32.3</var>the units in the building qualify as low-income rental housing units as certified
         under section <br/>
<statute_ref><a id="pl.32.4"></a><var>32.4</var>273.128, subdivision 3
         </statute_ref>, only the proportion of qualifying units to the total number of units <br/>
<a id="pl.32.5"></a><var>32.5</var>in the building qualify for class 4d. The remaining portion of the building shall
         be classified <br/>
<a id="pl.32.6"></a><var>32.6</var>by the assessor based upon its use. Class 4d also includes the same proportion of
         land as <br/>
<a id="pl.32.7"></a><var>32.7</var>the qualifying low-income rental housing units are to the total units in the building.
         For all <br/>
<a id="pl.32.8"></a><var>32.8</var>properties qualifying as class 4d, the market value determined by the assessor must
         be based <br/>
<a id="pl.32.9"></a><var>32.9</var>on the normal approach to value using normal unrestricted rents.<br/>
<a id="pl.32.10"></a><var>32.10</var>    (f) The first tier of market value of class 4d property has a classification rate
         of 0.75 <br/>
<a id="pl.32.11"></a><var>32.11</var>percent. The remaining value of class 4d property has a classification rate of 0.25
         percent. <br/>
<a id="pl.32.12"></a><var>32.12</var>For the purposes of this paragraph, the "first tier of market value of class 4d property"
         means <br/>
<a id="pl.32.13"></a><var>32.13</var>the market value of each housing unit up to the first tier limit. For the purposes
         of this <br/>
<a id="pl.32.14"></a><var>32.14</var>paragraph, all class 4d property value must be assigned to individual housing units.
         The <br/>
<a id="pl.32.15"></a><var>32.15</var>first tier limit is $100,000 for assessment year 2014. For subsequent years, the limit
         is <br/>
<a id="pl.32.16"></a><var>32.16</var>adjusted each year by the average statewide change in estimated market value of property
         <br/>
<a id="pl.32.17"></a><var>32.17</var>classified as class 4a and 4d under this section for the previous assessment year,
         excluding <br/>
<a id="pl.32.18"></a><var>32.18</var>valuation change due to new construction, rounded to the nearest $1,000, provided,
         however, <br/>
<a id="pl.32.19"></a><var>32.19</var>that the limit may never be less than $100,000. Beginning with assessment year 2015,
         the <br/>
<a id="pl.32.20"></a><var>32.20</var>commissioner of revenue must certify the limit for each assessment year by November
         1 <br/>
<a id="pl.32.21"></a><var>32.21</var>of the previous year.<br/>
<a id="pl.32.22"></a><var>32.22</var><b>EFFECTIVE DATE.</b>This section is effective beginning with taxes assessed in 2017 <br/>
<a id="pl.32.23"></a><var>32.23</var>and payable in 2018.<br/>
<br/>
<a id="bill.1.16.0"></a><a id="pl.32.24"></a><var>32.24</var>    Sec. 16. Minnesota Statutes 2016, section 273.13, subdivision 34, is amended to read:<br/>
<a id="pl.32.25"></a><var>32.25</var>    Subd. 34. <b>Homestead of disabled veteran or family caregiver.</b> (a) All or a portion of <br/>
<a id="pl.32.26"></a><var>32.26</var>the market value of property owned by a veteran and serving as the veteran's homestead
         <br/>
<a id="pl.32.27"></a><var>32.27</var>under this section is excluded in determining the property's taxable market value
         if the <br/>
<a id="pl.32.28"></a><var>32.28</var>veteran has a service-connected disability of 70 percent or more as certified by the
         United <br/>
<a id="pl.32.29"></a><var>32.29</var>States Department of Veterans Affairs. To qualify for exclusion under this subdivision,
         the <br/>
<a id="pl.32.30"></a><var>32.30</var>veteran must have been honorably discharged from the United States armed forces, as
         <br/>
<a id="pl.32.31"></a><var>32.31</var>indicated by United States Government Form DD214 or other official military discharge
         <br/>
<a id="pl.32.32"></a><var>32.32</var>papers.<br/>
<a id="pl.32.33"></a><var>32.33</var>    (b)(1) For a disability rating of 70 percent or more, $150,000 of market value is
         excluded, <br/>
<a id="pl.32.34"></a><var>32.34</var>except as provided in clause (2); and<br/>
<a id="pl.33.1"></a><var>33.1</var>    (2) for a total (100 percent) and permanent disability, $300,000 of market value is
         <br/>
<a id="pl.33.2"></a><var>33.2</var>excluded.<br/>
<a id="pl.33.3"></a><var>33.3</var>    (c) If a disabled veteran qualifying for a valuation exclusion under paragraph (b),
         clause <br/>
<a id="pl.33.4"></a><var>33.4</var>(2), predeceases the veteran's spouse, and if upon the death of the veteran the spouse
         holds <br/>
<a id="pl.33.5"></a><var>33.5</var>the legal or beneficial title to the homestead and permanently resides there, the
         exclusion <br/>
<a id="pl.33.6"></a><var>33.6</var>shall carry over to the benefit of the veteran's spouse for the current taxes payable
         year and <br/>
<a id="pl.33.7"></a><var>33.7</var>for eight additional taxes payable years or until such time as the spouse remarries,
         or sells, <br/>
<a id="pl.33.8"></a><var>33.8</var>transfers, or otherwise disposes of the property, whichever comes first. Qualification
         under <br/>
<a id="pl.33.9"></a><var>33.9</var>this paragraph requires an annual application under paragraph (h), and a spouse must notify <br/>
<a id="pl.33.10"></a><var>33.10</var>the assessor if there is a change in the spouse's marital status, ownership of the
         property, or <br/>
<a id="pl.33.11"></a><var>33.11</var>use of the property as a permanent residence.<br/>
<a id="pl.33.12"></a><var>33.12</var>(d) If the spouse of a member of any branch or unit of the United States armed forces
         <br/>
<a id="pl.33.13"></a><var>33.13</var>who dies due to a service-connected cause while serving honorably in active service,
         as <br/>
<a id="pl.33.14"></a><var>33.14</var>indicated on United States Government Form DD1300 or DD2064, holds the legal or <br/>
<a id="pl.33.15"></a><var>33.15</var>beneficial title to a homestead and permanently resides there, the spouse is entitled
         to the <br/>
<a id="pl.33.16"></a><var>33.16</var>benefit described in paragraph (b), clause (2), for eight taxes payable years, or
         until such <br/>
<a id="pl.33.17"></a><var>33.17</var>time as the spouse remarries or sells, transfers, or otherwise disposes of the property,
         <br/>
<a id="pl.33.18"></a><var>33.18</var>whichever comes first.<br/>
<a id="pl.33.19"></a><var>33.19</var>(e) If a veteran meets the disability criteria of paragraph (a) but does not own property
         <br/>
<a id="pl.33.20"></a><var>33.20</var>classified as homestead in the state of Minnesota, then the homestead of the veteran's
         primary <br/>
<a id="pl.33.21"></a><var>33.21</var>family caregiver, if any, is eligible for the exclusion that the veteran would otherwise
         qualify <br/>
<a id="pl.33.22"></a><var>33.22</var>for under paragraph (b).<br/>
<a id="pl.33.23"></a><var>33.23</var>    (f) In the case of an agricultural homestead, only the portion of the property consisting
         <br/>
<a id="pl.33.24"></a><var>33.24</var>of the house and garage and immediately surrounding one acre of land qualifies for
         the <br/>
<a id="pl.33.25"></a><var>33.25</var>valuation exclusion under this subdivision.<br/>
<a id="pl.33.26"></a><var>33.26</var>    (g) A property qualifying for a valuation exclusion under this subdivision is not
         eligible <br/>
<a id="pl.33.27"></a><var>33.27</var>for the market value exclusion under subdivision 35, or classification under subdivision
         22, <br/>
<a id="pl.33.28"></a><var>33.28</var>paragraph (b).<br/>
<a id="pl.33.29"></a><var>33.29</var>    (h) To qualify for a valuation exclusion under this subdivision a property owner must
         <br/>
<a id="pl.33.30"></a><var>33.30</var>apply to the assessor by July 1 of each assessment year, except that an annual reapplication <br/>
<a id="pl.33.31"></a><var>33.31</var>is not required once a property has been accepted for a valuation exclusion under
         paragraph <br/>
<a id="pl.33.32"></a><var>33.32</var>(a) and qualifies for the benefit described in paragraph (b), clause (2), and the
         property <br/>
<a id="pl.33.33"></a><var>33.33</var>continues to qualify until there is a change in ownership of the first assessment year for <br/>
<a id="pl.33.34"></a><var>33.34</var>which the exclusion is sought. For an application received after July 1 of any calendar year, <br/>
<a id="pl.34.1"></a><var>34.1</var>the exclusion shall become effective for the following assessment year. Except as provided <br/>
<a id="pl.34.2"></a><var>34.2</var>in paragraph (c), the owner of a property that has been accepted for a valuation exclusion
         <br/>
<a id="pl.34.3"></a><var>34.3</var>must notify the assessor if there is a change in ownership of the property or in the
         use of <br/>
<a id="pl.34.4"></a><var>34.4</var>the property as a homestead.<br/>
<a id="pl.34.5"></a><var>34.5</var>(i) A first-time application by a qualifying spouse for the market value exclusion
         under <br/>
<a id="pl.34.6"></a><var>34.6</var>paragraph (d) must be made any time within two years of the death of the service member.<br/>
<a id="pl.34.7"></a><var>34.7</var>(j) For purposes of this subdivision:<br/>
<a id="pl.34.8"></a><var>34.8</var>(1) "active service" has the meaning given in section 
         <statute_ref>190.05</statute_ref>;<br/>
<a id="pl.34.9"></a><var>34.9</var>(2) "own" means that the person's name is present as an owner on the property deed;<br/>
<a id="pl.34.10"></a><var>34.10</var>(3) "primary family caregiver" means a person who is approved by the secretary of
         the <br/>
<a id="pl.34.11"></a><var>34.11</var>United States Department of Veterans Affairs for assistance as the primary provider
         of <br/>
<a id="pl.34.12"></a><var>34.12</var>personal care services for an eligible veteran under the Program of Comprehensive
         Assistance <br/>
<a id="pl.34.13"></a><var>34.13</var>for Family Caregivers, codified as United States Code, title 38, section 1720G; and<br/>
<a id="pl.34.14"></a><var>34.14</var>(4) "veteran" has the meaning given the term in section 
         <statute_ref>197.447</statute_ref>.<br/>
<a id="pl.34.15"></a><var>34.15</var>(k) If a veteran dying after December 31, 2011, did not apply for or receive the exclusion
         <br/>
<a id="pl.34.16"></a><var>34.16</var>under paragraph (b), clause (2), before dying, the veteran's spouse is entitled to
         the benefit <br/>
<a id="pl.34.17"></a><var>34.17</var>under paragraph (b), clause (2), for eight taxes payable years or until the spouse
         remarries <br/>
<a id="pl.34.18"></a><var>34.18</var>or sells, transfers, or otherwise disposes of the property if:<br/>
<a id="pl.34.19"></a><var>34.19</var>(1) the spouse files a first-time application within two years of the death of the
         service <br/>
<a id="pl.34.20"></a><var>34.20</var>member or by June 1, 2019, whichever is later;<br/>
<a id="pl.34.21"></a><var>34.21</var>(2) upon the death of the veteran, the spouse holds the legal or beneficial title
         to the <br/>
<a id="pl.34.22"></a><var>34.22</var>homestead and permanently resides there;<br/>
<a id="pl.34.23"></a><var>34.23</var>(3) the veteran met the honorable discharge requirements of paragraph (a); and<br/>
<a id="pl.34.24"></a><var>34.24</var>(4) the United States Department of Veterans Affairs certifies that:<br/>
<a id="pl.34.25"></a><var>34.25</var>(i) the veteran met the total (100 percent) and permanent disability requirement under
         <br/>
<a id="pl.34.26"></a><var>34.26</var>paragraph (b), clause (2); or<br/>
<a id="pl.34.27"></a><var>34.27</var>(ii) the spouse has been awarded dependency and indemnity compensation.<br/>
<a id="pl.34.28"></a><var>34.28</var>(l) The purpose of this provision of law providing a level of homestead property tax
         <br/>
<a id="pl.34.29"></a><var>34.29</var>relief for gravely disabled veterans, their primary family caregivers, and their surviving
         <br/>
<a id="pl.34.30"></a><var>34.30</var>spouses is to help ease the burdens of war for those among our state's citizens who
         bear <br/>
<a id="pl.34.31"></a><var>34.31</var>those burdens most heavily.<br/>
<a id="pl.35.1"></a><var>35.1</var>(m) By July 1, the county veterans service officer must certify the disability rating
         of <br/>
<a id="pl.35.2"></a><var>35.2</var>each veteran receiving the benefit under paragraph (b) to the assessor.<br/>
<a id="pl.35.3"></a><var>35.3</var><b>EFFECTIVE DATE.</b>This section is effective beginning with taxes payable in 2018.<br/>
<br/>
<a id="bill.1.17.0"></a><a id="pl.35.4"></a><var>35.4</var>    Sec. 17. <b>[274.132] PROPERTY OVERVALUED.</b><br/>
<a id="pl.35.5"></a><var>35.5</var>    Subdivision 1. <b>Valuation appeals. </b> Notwithstanding any other law to the contrary, when <br/>
<a id="pl.35.6"></a><var>35.6</var>the value of a property is reduced by a local, special, or county board of appeal
         and <br/>
<a id="pl.35.7"></a><var>35.7</var>equalization, the state board of equalization, an order from the Minnesota Tax Court,
         or an <br/>
<a id="pl.35.8"></a><var>35.8</var>abatement to correct an error in valuation, a property owner may appeal the valuation
         of <br/>
<a id="pl.35.9"></a><var>35.9</var>the property for the taxes payable year immediately preceding the year for which the
         value <br/>
<a id="pl.35.10"></a><var>35.10</var>is reduced, provided that the valuation of the property for the immediately preceding
         taxes <br/>
<a id="pl.35.11"></a><var>35.11</var>payable year was not previously appealed. An appeal under this subdivision may only
         be <br/>
<a id="pl.35.12"></a><var>35.12</var>taken to the Minnesota Tax Court.<br/>
<a id="pl.35.13"></a><var>35.13</var>    Subd. 2. <b>Credit for overpayment of tax.</b> (a) The county auditor shall credit any refund <br/>
<a id="pl.35.14"></a><var>35.14</var>determined by the Minnesota Tax Court under subdivision 1 against the succeeding year's
         <br/>
<a id="pl.35.15"></a><var>35.15</var>tax payable on the property according to the following schedule:<br/>
<a id="pl.35.16"></a><var>35.16</var>(1) if the refund is less than 25 percent of the total tax payable on the property
         for the <br/>
<a id="pl.35.17"></a><var>35.17</var>current year, it shall be credited to the tax payable on the property in the succeeding
         taxes <br/>
<a id="pl.35.18"></a><var>35.18</var>payable year; or<br/>
<a id="pl.35.19"></a><var>35.19</var>(2) if the refund is 25 percent or more of the total tax payable on the property for
         the <br/>
<a id="pl.35.20"></a><var>35.20</var>current year, beginning in the succeeding taxes payable year, it shall be credited
         to the tax <br/>
<a id="pl.35.21"></a><var>35.21</var>payable on the property at a rate of 25 percent of the property taxes due per year
         until <br/>
<a id="pl.35.22"></a><var>35.22</var>credited in full.<br/>
<a id="pl.35.23"></a><var>35.23</var>(b) The credit under this subdivision shall reduce the tax payable to each jurisdiction
         in <br/>
<a id="pl.35.24"></a><var>35.24</var>proportion to the total tax payable on the property.<br/>
<a id="pl.35.25"></a><var>35.25</var><b>EFFECTIVE DATE.</b>This section is effective for appeals, orders, and abatements in <br/>
<a id="pl.35.26"></a><var>35.26</var>2018 and thereafter.<br/>
<br/>
<a id="bill.1.18.0"></a><a id="pl.35.27"></a><var>35.27</var>    Sec. 18. Minnesota Statutes 2016, section 275.025, subdivision 1, is amended to read:<br/>
<a id="pl.35.28"></a><var>35.28</var>    Subdivision 1. <b>Levy amount.</b> The state general levy is levied against <br/>
<a id="pl.35.29"></a><var>35.29</var>commercial-industrial property and seasonal residential recreational property, as
         defined <br/>
<a id="pl.35.30"></a><var>35.30</var>in this section. The state general levy base amount is $592,000,000 for commercial-industrial <br/>
<a id="pl.35.31"></a><var>35.31</var>property is $713,050,000 for taxes payable in 2002 2018 and thereafter. For taxes payable <br/>
<a id="pl.35.32"></a><var>35.32</var>in subsequent years, the levy base amount is increased each year by multiplying the
         levy <br/>
<a id="pl.36.1"></a><var>36.1</var>base amount for the prior year by the sum of one plus the rate of increase, if any,
         in the <br/>
<a id="pl.36.2"></a><var>36.2</var>implicit price deflator for government consumption expenditures and gross investment
         for <br/>
<a id="pl.36.3"></a><var>36.3</var>state and local governments prepared by the Bureau of Economic Analysts of the United
         <br/>
<a id="pl.36.4"></a><var>36.4</var>States Department of Commerce for the 12-month period ending March 31 of the year
         prior <br/>
<a id="pl.36.5"></a><var>36.5</var>to the year the taxes are payable. The state general levy for seasonal-recreational property <br/>
<a id="pl.36.6"></a><var>36.6</var>is $43,130,000 for taxes payable in 2018 and thereafter. The tax under this section is not <br/>
<a id="pl.36.7"></a><var>36.7</var>treated as a local tax rate under section 
         <statute_ref>469.177</statute_ref> and is not the levy of a governmental unit <br/>
<a id="pl.36.8"></a><var>36.8</var>under chapters 276A and 473F.<br/>
<a id="pl.36.9"></a><var>36.9</var>The commissioner shall increase or decrease the preliminary or final rate for a year
         as <br/>
<a id="pl.36.10"></a><var>36.10</var>necessary to account for errors and tax base changes that affected a preliminary or
         final rate <br/>
<a id="pl.36.11"></a><var>36.11</var>for either of the two preceding years. Adjustments are allowed to the extent that
         the necessary <br/>
<a id="pl.36.12"></a><var>36.12</var>information is available to the commissioner at the time the rates for a year must
         be certified, <br/>
<a id="pl.36.13"></a><var>36.13</var>and for the following reasons:<br/>
<a id="pl.36.14"></a><var>36.14</var>(1) an erroneous report of taxable value by a local official;<br/>
<a id="pl.36.15"></a><var>36.15</var>(2) an erroneous calculation by the commissioner; and<br/>
<a id="pl.36.16"></a><var>36.16</var>(3) an increase or decrease in taxable value for commercial-industrial or seasonal
         <br/>
<a id="pl.36.17"></a><var>36.17</var>residential recreational property reported on the abstracts of tax lists submitted
         under section <br/>
<statute_ref><a id="pl.36.18"></a><var>36.18</var>275.29
         </statute_ref> that was not reported on the abstracts of assessment submitted under section 
         <statute_ref>270C.89</statute_ref> <br/>
<a id="pl.36.19"></a><var>36.19</var>for the same year.<br/>
<a id="pl.36.20"></a><var>36.20</var>The commissioner may, but need not, make adjustments if the total difference in the
         tax <br/>
<a id="pl.36.21"></a><var>36.21</var>levied for the year would be less than $100,000.<br/>
<a id="pl.36.22"></a><var>36.22</var><b>EFFECTIVE DATE.</b>This section is effective for taxes payable in 2018 and thereafter.<br/>
<br/>
<a id="bill.1.19.0"></a><a id="pl.36.23"></a><var>36.23</var>    Sec. 19. Minnesota Statutes 2016, section 275.025, subdivision 2, is amended to read:<br/>
<a id="pl.36.24"></a><var>36.24</var>    Subd. 2. <b>Commercial-industrial tax capacity.</b> For the purposes of this section, <br/>
<a id="pl.36.25"></a><var>36.25</var>"commercial-industrial tax capacity" means the tax capacity of all taxable property
         classified <br/>
<a id="pl.36.26"></a><var>36.26</var>as class 3 or class 5(1) under section 
         <statute_ref>273.13</statute_ref>, except for excluding:<br/>
<a id="pl.36.27"></a><var>36.27</var>(1) the tax capacity attributable to the first $200,000 of market value of each parcel
         of <br/>
<a id="pl.36.28"></a><var>36.28</var>commercial-industrial property as defined under section 273.13, subdivision 24, clauses
         (1) <br/>
<a id="pl.36.29"></a><var>36.29</var>and (2);<br/>
<a id="pl.36.30"></a><var>36.30</var>(2) electric generation attached machinery under class 3; and<br/>
<a id="pl.36.31"></a><var>36.31</var>(3) property described in section 
         <statute_ref>473.625</statute_ref>.<br/>
<a id="pl.37.1"></a><var>37.1</var>County commercial-industrial tax capacity amounts are not adjusted for the captured
         <br/>
<a id="pl.37.2"></a><var>37.2</var>net tax capacity of a tax increment financing district under section 
         <statute_ref>469.177, subdivision 2</statute_ref>, <br/>
<a id="pl.37.3"></a><var>37.3</var>the net tax capacity of transmission lines deducted from a local government's total
         net tax <br/>
<a id="pl.37.4"></a><var>37.4</var>capacity under section 
         <statute_ref>273.425</statute_ref>, or fiscal disparities contribution and distribution net tax <br/>
<a id="pl.37.5"></a><var>37.5</var>capacities under chapter 276A or 473F. For purposes of this subdivision, the procedures <br/>
<a id="pl.37.6"></a><var>37.6</var>for determining eligibility for tier 1 under section 273.13, subdivision 24, clauses
         (1) and <br/>
<a id="pl.37.7"></a><var>37.7</var>(2), shall apply in determining the portion of a property eligible to be considered
         within the <br/>
<a id="pl.37.8"></a><var>37.8</var>first $200,000 of market value.<br/>
<a id="pl.37.9"></a><var>37.9</var><b>EFFECTIVE DATE.</b>This section is effective for taxes payable in 2018 and thereafter.<br/>
<br/>
<a id="bill.1.20.0"></a><a id="pl.37.10"></a><var>37.10</var>    Sec. 20. Minnesota Statutes 2016, section 275.025, subdivision 4, is amended to read:<br/>
<a id="pl.37.11"></a><var>37.11</var>    Subd. 4. <b>Apportionment and levy of state general tax.</b> Ninety-five percent of The <br/>
<a id="pl.37.12"></a><var>37.12</var>state general tax must be levied by applying a uniform rate to all commercial-industrial
         tax <br/>
<a id="pl.37.13"></a><var>37.13</var>capacity and five percent of the state general tax must be levied by applying a uniform rate <br/>
<a id="pl.37.14"></a><var>37.14</var>to all seasonal residential recreational tax capacity. On or before October 1 each
         year, the <br/>
<a id="pl.37.15"></a><var>37.15</var>commissioner of revenue shall certify the preliminary state general levy rates to
         each county <br/>
<a id="pl.37.16"></a><var>37.16</var>auditor that must be used to prepare the notices of proposed property taxes for taxes
         payable <br/>
<a id="pl.37.17"></a><var>37.17</var>in the following year. By January 1 of each year, the commissioner shall certify the
         final <br/>
<a id="pl.37.18"></a><var>37.18</var>state general levy rate rates to each county auditor that shall be used in spreading taxes.<br/>
<a id="pl.37.19"></a><var>37.19</var><b>EFFECTIVE DATE.</b>This section is effective for taxes payable in 2018 and thereafter.<br/>
<br/>
<a id="bill.1.21.0"></a><a id="pl.37.20"></a><var>37.20</var>    Sec. 21. Minnesota Statutes 2016, section 275.025, is amended by adding a subdivision <br/>
<a id="pl.37.21"></a><var>37.21</var>to read:<br/>
<a id="pl.37.22"></a><var>37.22</var>    Subd. 5. <b>Underserved municipalities distribution.</b> (a) Any municipality that:<br/>
<a id="pl.37.23"></a><var>37.23</var>(1) lies wholly or partially within the metropolitan area as defined under section
         473.121, <br/>
<a id="pl.37.24"></a><var>37.24</var>subdivision 2, but outside the transit taxing district as defined under section 473.446,
         <br/>
<a id="pl.37.25"></a><var>37.25</var>subdivision 2; and<br/>
<a id="pl.37.26"></a><var>37.26</var>(2) has a net fiscal disparities contribution equal to or greater than eight percent
         of its <br/>
<a id="pl.37.27"></a><var>37.27</var>total taxable net tax capacity,<br/>
<a id="pl.37.28"></a><var>37.28</var>is eligible for a distribution from the proceeds of the state general levy imposed
         on taxpayers <br/>
<a id="pl.37.29"></a><var>37.29</var>within the municipality.<br/>
<a id="pl.37.30"></a><var>37.30</var>(b) The distribution is equal to (1) the municipality's net tax capacity tax rate,
         times (2) <br/>
<a id="pl.37.31"></a><var>37.31</var>the municipality's net fiscal disparities contribution in excess of eight percent
         of its total <br/>
<a id="pl.38.1"></a><var>38.1</var>taxable net tax capacity; provided, however, that the distribution may not exceed
         the tax <br/>
<a id="pl.38.2"></a><var>38.2</var>under this section imposed on taxpayers within the municipality.<br/>
 <a id="pl.38.3"></a><var>38.3</var>(c) The distribution under this subdivision must be paid to the qualifying municipality
         <br/>
<a id="pl.38.4"></a><var>38.4</var>at the same time taxes are settled under sections 276.09 to 276.111.<br/>
<a id="pl.38.5"></a><var>38.5</var>(d) For purposes of this subdivision, the following terms have the meanings given.<br/>
<a id="pl.38.6"></a><var>38.6</var>(1) "Municipality" means a home rule or statutory city, or a town, except that in
         the case <br/>
<a id="pl.38.7"></a><var>38.7</var>of a city that lies only partially within the metropolitan area, municipality means
         the portion <br/>
<a id="pl.38.8"></a><var>38.8</var>of the city lying within the metropolitan area.<br/>
 <a id="pl.38.9"></a><var>38.9</var>(2) "Net fiscal disparities contribution" means a municipality's fiscal disparities
         <br/>
<a id="pl.38.10"></a><var>38.10</var>contribution tax capacity minus its distribution net tax capacity.<br/>
<a id="pl.38.11"></a><var>38.11</var>(3) "Total taxable net tax capacity" means the total net tax capacity of all properties
         in <br/>
<a id="pl.38.12"></a><var>38.12</var>the municipality under section 273.13 minus (i) the net fiscal disparities contribution,
         and <br/>
<a id="pl.38.13"></a><var>38.13</var>(ii) the municipality's tax increment captured net tax capacity.<br/>
<a id="pl.38.14"></a><var>38.14</var><b>EFFECTIVE DATE.</b>This section is effective for taxes payable in 2018 and thereafter.<br/>
<br/>
<a id="bill.1.22.0"></a><a id="pl.38.15"></a><var>38.15</var>    Sec. 22. Minnesota Statutes 2016, section 275.066, is amended to read:<br/>
<a id="pl.38.16"></a><var>38.16</var><b>275.066 SPECIAL TAXING DISTRICTS; DEFINITION.</b><br/>
<a id="pl.38.17"></a><var>38.17</var>    For the purposes of property taxation and property tax state aids, the term "special
         taxing <br/>
<a id="pl.38.18"></a><var>38.18</var>districts" includes the following entities:<br/>
<a id="pl.38.19"></a><var>38.19</var>    (1) watershed districts under chapter 103D;<br/>
<a id="pl.38.20"></a><var>38.20</var>    (2) sanitary districts under sections 
         <statute_ref>442A.01</statute_ref> to 
         <statute_ref>442A.29</statute_ref>;<br/>
<a id="pl.38.21"></a><var>38.21</var>    (3) regional sanitary sewer districts under sections 
         <statute_ref>115.61</statute_ref> to 
         <statute_ref>115.67</statute_ref>;<br/>
<a id="pl.38.22"></a><var>38.22</var>    (4) regional public library districts under section 
         <statute_ref>134.201</statute_ref>;<br/>
<a id="pl.38.23"></a><var>38.23</var>    (5) park districts under chapter 398;<br/>
<a id="pl.38.24"></a><var>38.24</var>    (6) regional railroad authorities under chapter 398A;<br/>
<a id="pl.38.25"></a><var>38.25</var>    (7) hospital districts under sections 
         <statute_ref>447.31</statute_ref> to 
         <statute_ref>447.38</statute_ref>;<br/>
<a id="pl.38.26"></a><var>38.26</var>    (8) St. Cloud Metropolitan Transit Commission under sections 
         <statute_ref>458A.01</statute_ref> to 
         <statute_ref>458A.15</statute_ref>;<br/>
<a id="pl.38.27"></a><var>38.27</var>    (9) Duluth Transit Authority under sections 
         <statute_ref>458A.21</statute_ref> to 
         <statute_ref>458A.37</statute_ref>;<br/>
<a id="pl.38.28"></a><var>38.28</var>    (10) regional development commissions under sections 
         <statute_ref>462.381</statute_ref> to 
         <statute_ref>462.398</statute_ref>;<br/>
<a id="pl.38.29"></a><var>38.29</var>    (11) housing and redevelopment authorities under sections 
         <statute_ref>469.001</statute_ref> to 
         <statute_ref>469.047</statute_ref>;<br/>
<a id="pl.39.1"></a><var>39.1</var>    (12) port authorities under sections 
         <statute_ref>469.048</statute_ref> to 
         <statute_ref>469.068</statute_ref>;<br/>
<a id="pl.39.2"></a><var>39.2</var>    (13) economic development authorities under sections 
         <statute_ref>469.090</statute_ref> to 
         <statute_ref>469.1081</statute_ref>;<br/>
<a id="pl.39.3"></a><var>39.3</var>    (14) Metropolitan Council under sections 
         <statute_ref>473.123</statute_ref> to 
         <statute_ref>473.549</statute_ref>;<br/>
<a id="pl.39.4"></a><var>39.4</var>    (15) Metropolitan Airports Commission under sections 
         <statute_ref>473.601</statute_ref> to 
         <statute_ref>473.679</statute_ref>;<br/>
<a id="pl.39.5"></a><var>39.5</var>    (16) Metropolitan Mosquito Control Commission under sections 
         <statute_ref>473.701</statute_ref> to 
         <statute_ref>473.716</statute_ref>;<br/>
<a id="pl.39.6"></a><var>39.6</var>    (17) Morrison County Rural Development Financing Authority under Laws 1982, chapter
         <br/>
<a id="pl.39.7"></a><var>39.7</var>437, section 1;<br/>
<a id="pl.39.8"></a><var>39.8</var>    (18) Croft Historical Park District under Laws 1984, chapter 502, article 13, section
         6;<br/>
<a id="pl.39.9"></a><var>39.9</var>    (19) East Lake County Medical Clinic District under Laws 1989, chapter 211, sections
         <br/>
<a id="pl.39.10"></a><var>39.10</var>1 to 6;<br/>
<a id="pl.39.11"></a><var>39.11</var>    (20) Floodwood Area Ambulance District under Laws 1993, chapter 375, article 5, <br/>
<a id="pl.39.12"></a><var>39.12</var>section 39;<br/>
<a id="pl.39.13"></a><var>39.13</var>    (21) Middle Mississippi River Watershed Management Organization under sections <br/>
<statute_ref><a id="pl.39.14"></a><var>39.14</var>103B.211
         </statute_ref> and 
         <statute_ref>103B.241</statute_ref>;<br/>
<a id="pl.39.15"></a><var>39.15</var>    (22) emergency medical services special taxing districts under section 144F.01;<br/>
<a id="pl.39.16"></a><var>39.16</var>    (23) a county levying under the authority of section 
         <statute_ref>103B.241</statute_ref>, 
         <statute_ref>103B.245</statute_ref>, or
<statute_ref>103B.251, <br/>
<a id="pl.39.17"></a><var>39.17</var>or 103C.331
</statute_ref>;<br/>
<a id="pl.39.18"></a><var>39.18</var>    (24) Southern St. Louis County Special Taxing District; Chris Jensen Nursing Home
         <br/>
<a id="pl.39.19"></a><var>39.19</var>under Laws 2003, First Special Session chapter 21, article 4, section 12;<br/>
<a id="pl.39.20"></a><var>39.20</var>    (25) an airport authority created under section 
         <statute_ref>360.0426</statute_ref>; and<br/>
<a id="pl.39.21"></a><var>39.21</var>    (26) any other political subdivision of the state of Minnesota, excluding counties,
         school <br/>
<a id="pl.39.22"></a><var>39.22</var>districts, cities, and towns, that has the power to adopt and certify a property tax
         levy to the <br/>
<a id="pl.39.23"></a><var>39.23</var>county auditor, as determined by the commissioner of revenue.<br/>
<br/>
<a id="bill.1.23.0"></a><a id="pl.39.24"></a><var>39.24</var>    Sec. 23. Minnesota Statutes 2016, section 276.017, subdivision 3, is amended to read:<br/>
<a id="pl.39.25"></a><var>39.25</var>    Subd. 3. <b>United States Postal Service postmark</b><b> Proof of timely payment</b><b>.</b> The <br/>
<a id="pl.39.26"></a><var>39.26</var>postmark or registration mark of the United States Postal Service qualifies as proof of timely <br/>
<a id="pl.39.27"></a><var>39.27</var>mailing for this section. If the payment is sent by United States registered mail, the date of <br/>
<a id="pl.39.28"></a><var>39.28</var>registration is the postmark date. If the payment is sent by United States certified
         mail, the <br/>
<a id="pl.39.29"></a><var>39.29</var>date of the United States Postal Service postmark on the receipt given to the person
         presenting <br/>
<a id="pl.39.30"></a><var>39.30</var>the payment for delivery is the date of mailing. Mailing, or the time of mailing, may also <br/>
<a id="pl.40.1"></a><var>40.1</var>be established by a delivery service's records or other available evidence except that. The <br/>
<a id="pl.40.2"></a><var>40.2</var>postmark of a private postage meter or internet stamp may not be used as proof of a timely <br/>
<a id="pl.40.3"></a><var>40.3</var>mailing made under this section.<br/>
<br/>
<a id="bill.1.24.0"></a><a id="pl.40.4"></a><var>40.4</var>    Sec. 24. Minnesota Statutes 2016, section 279.01, subdivision 1, is amended to read:<br/>
<a id="pl.40.5"></a><var>40.5</var>    Subdivision 1. <b>Due dates; penalties.</b> Except as provided in subdivisions 3 to 5, on May <br/>
<a id="pl.40.6"></a><var>40.6</var>16 or 21 days after the postmark date on the envelope containing the property tax
         statement, <br/>
<a id="pl.40.7"></a><var>40.7</var>whichever is later, a penalty accrues and thereafter is charged upon all unpaid taxes
         on real <br/>
<a id="pl.40.8"></a><var>40.8</var>estate on the current lists in the hands of the county treasurer. The (a) When the taxes against <br/>
<a id="pl.40.9"></a><var>40.9</var>any tract or lot exceed $100, one-half of the amount of tax due must be paid prior
         to May <br/>
<a id="pl.40.10"></a><var>40.10</var>16, and the remaining one-half must be paid prior to the following October 16. If
         either tax <br/>
<a id="pl.40.11"></a><var>40.11</var>amount is unpaid as of its due date, a penalty is imposed at a rate of two percent on homestead <br/>
<a id="pl.40.12"></a><var>40.12</var>property until May 31 and four percent on nonhomestead property. If complete payment <br/>
<a id="pl.40.13"></a><var>40.13</var>has not been made by the first day of the month following either due date, an additional
         <br/>
<a id="pl.40.14"></a><var>40.14</var>penalty of two percent on June 1. The penalty on nonhomestead property is at a rate of four <br/>
<a id="pl.40.15"></a><var>40.15</var>percent until May 31 homestead property  and eight four percent on June 1. This penalty <br/>
<a id="pl.40.16"></a><var>40.16</var>does not accrue until June 1 of each year, or 21 days after the postmark date on the
         envelope <br/>
<a id="pl.40.17"></a><var>40.17</var>containing the property tax statements, whichever is later, on commercial use real
         property <br/>
<a id="pl.40.18"></a><var>40.18</var>used for seasonal residential recreational purposes and classified as class 1c or
         4c, and on <br/>
<a id="pl.40.19"></a><var>40.19</var>other commercial use real property classified as class 3a, provided that over 60 percent
         of <br/>
<a id="pl.40.20"></a><var>40.20</var>the gross income earned by the enterprise on the class 3a property is earned during
         the <br/>
<a id="pl.40.21"></a><var>40.21</var>months of May, June, July, and August. In order for the first half of the tax due
         on class 3a <br/>
<a id="pl.40.22"></a><var>40.22</var>property to be paid after May 15 and before June 1, or 21 days after the postmark
         date on <br/>
<a id="pl.40.23"></a><var>40.23</var>the envelope containing the property tax statement, whichever is later, without penalty,
         the <br/>
<a id="pl.40.24"></a><var>40.24</var>owner of the property must attach an affidavit to the payment attesting to compliance
         with <br/>
<a id="pl.40.25"></a><var>40.25</var>the income provision of this subdivision nonhomestead property is imposed. Thereafter, <br/>
<a id="pl.40.26"></a><var>40.26</var>for both homestead and nonhomestead property, on the first day of each subsequent month <br/>
<a id="pl.40.27"></a><var>40.27</var>beginning July 1, up to and including October 1 following through December, an additional <br/>
<a id="pl.40.28"></a><var>40.28</var>penalty of one percent for each month accrues and is charged on all such unpaid taxes
         <br/>
<a id="pl.40.29"></a><var>40.29</var>provided that if the due date was extended beyond May 15 as the result of any delay in <br/>
<a id="pl.40.30"></a><var>40.30</var>mailing property tax statements no additional penalty shall accrue if the tax is paid
         by the <br/>
<a id="pl.40.31"></a><var>40.31</var>extended due date. If the tax is not paid by the extended due date, then all penalties
         that <br/>
<a id="pl.40.32"></a><var>40.32</var>would have accrued if the due date had been May 15 shall be charged. When the taxes
         <br/>
<a id="pl.40.33"></a><var>40.33</var>against any tract or lot exceed $100, one-half thereof may be paid prior to May 16
         or 21 <br/>
<a id="pl.40.34"></a><var>40.34</var>days after the postmark date on the envelope containing the property tax statement,
         whichever <br/>
<a id="pl.40.35"></a><var>40.35</var>is later; and, if so paid, no penalty attaches; the remaining one-half may be paid
         at any time <br/>
<a id="pl.41.1"></a><var>41.1</var>prior to October 16 following, without penalty; but, if not so paid, then a penalty
         of two <br/>
<a id="pl.41.2"></a><var>41.2</var>percent accrues thereon for homestead property and a penalty of four percent on <br/>
<a id="pl.41.3"></a><var>41.3</var>nonhomestead property. Thereafter, for homestead property, on the first day of November
         <br/>
<a id="pl.41.4"></a><var>41.4</var>an additional penalty of four percent accrues and on the first day of December following,
         <br/>
<a id="pl.41.5"></a><var>41.5</var>an additional penalty of two percent accrues and is charged on all such unpaid taxes.
         <br/>
<a id="pl.41.6"></a><var>41.6</var>Thereafter, for nonhomestead property, on the first day of November and December <br/>
<a id="pl.41.7"></a><var>41.7</var>following, an additional penalty of four percent for each month accrues and is charged
         on <br/>
<a id="pl.41.8"></a><var>41.8</var>all such unpaid taxes. If one-half of such taxes are not paid prior to May 16 or 21
         days after <br/>
<a id="pl.41.9"></a><var>41.9</var>the postmark date on the envelope containing the property tax statement, whichever
         is later, <br/>
<a id="pl.41.10"></a><var>41.10</var>the same may be paid at any time prior to October 16, with accrued penalties to the
         date of <br/>
<a id="pl.41.11"></a><var>41.11</var>payment added, and thereupon no penalty attaches to the remaining one-half until October
         <br/>
<a id="pl.41.12"></a><var>41.12</var>16 following the penalty must not exceed eight percent in the case of homestead property, <br/>
<a id="pl.41.13"></a><var>41.13</var>or 12 percent in the case of nonhomestead property.<br/>
 <a id="pl.41.14"></a><var>41.14</var>(b) If the property tax statement was not postmarked prior to April 25, the first
         half <br/>
<a id="pl.41.15"></a><var>41.15</var>payment due date in paragraph (a) shall be 21 days from the postmark date of the property
         <br/>
<a id="pl.41.16"></a><var>41.16</var>tax statement, and all penalties referenced in paragraph (a) shall be determined with
         regard <br/>
<a id="pl.41.17"></a><var>41.17</var>to the later due date.<br/>
<a id="pl.41.18"></a><var>41.18</var>(c) In the case of a tract or lot with taxes of $100 or less, the due date and penalties
         as <br/>
<a id="pl.41.19"></a><var>41.19</var>specified in paragraph (a) or (b) for the first half payment shall apply to the entire
         amount <br/>
<a id="pl.41.20"></a><var>41.20</var>of the tax due.<br/>
<a id="pl.41.21"></a><var>41.21</var>(d) For commercial use real property used for seasonal residential recreational purposes
         <br/>
<a id="pl.41.22"></a><var>41.22</var>and classified as class 1c or 4c, and on other commercial use real property classified
         as class <br/>
<a id="pl.41.23"></a><var>41.23</var>3a, provided that over 60 percent of the gross income earned by the enterprise on
         the class <br/>
<a id="pl.41.24"></a><var>41.24</var>3a property is earned during the months of May, June, July, and August, the first
         half <br/>
<a id="pl.41.25"></a><var>41.25</var>payment is due prior to June 1. For a class 3a property to qualify for the later due
         date, the <br/>
<a id="pl.41.26"></a><var>41.26</var>owner of the property must attach an affidavit to the payment attesting to compliance
         with <br/>
<a id="pl.41.27"></a><var>41.27</var>the income requirements of this paragraph.<br/>
<a id="pl.41.28"></a><var>41.28</var>    (e) This section applies to payment of personal property taxes assessed against <br/>
<a id="pl.41.29"></a><var>41.29</var>improvements to leased property, except as provided by section 
         <statute_ref>277.01, subdivision 3</statute_ref>.<br/>
<a id="pl.41.30"></a><var>41.30</var>    (f) A county may provide by resolution that in the case of a property owner that has <br/>
<a id="pl.41.31"></a><var>41.31</var>multiple tracts or parcels with aggregate taxes exceeding $100, payments may be made
         in <br/>
<a id="pl.41.32"></a><var>41.32</var>installments as provided in this subdivision.<br/>
<a id="pl.41.33"></a><var>41.33</var>    (g) The county treasurer may accept payments of more or less than the exact amount of
         <br/>
<a id="pl.41.34"></a><var>41.34</var>a tax installment due. Payments must be applied first to the oldest installment that
         is due <br/>
<a id="pl.42.1"></a><var>42.1</var>but which has not been fully paid. If the accepted payment is less than the amount
         due, <br/>
<a id="pl.42.2"></a><var>42.2</var>payments must be applied first to the penalty accrued for the year or the installment
         being <br/>
<a id="pl.42.3"></a><var>42.3</var>paid. Acceptance of partial payment of tax does not constitute a waiver of the minimum
         <br/>
<a id="pl.42.4"></a><var>42.4</var>payment required as a condition for filing an appeal under section 
         <statute_ref>278.03</statute_ref> or any other law, <br/>
<a id="pl.42.5"></a><var>42.5</var>nor does it affect the order of payment of delinquent taxes under section 
         <statute_ref>280.39</statute_ref>.<br/>
<a id="pl.42.6"></a><var>42.6</var><b>EFFECTIVE DATE.</b>This section is effective beginning with taxes payable in 2018.<br/>
<br/>
<a id="bill.1.25.0"></a><a id="pl.42.7"></a><var>42.7</var>    Sec. 25. Minnesota Statutes 2016, section 279.01, subdivision 2, is amended to read:<br/>
<a id="pl.42.8"></a><var>42.8</var>    Subd. 2. <b>Abatement of penalty.</b> (a) The county board may, with the concurrence of the <br/>
<a id="pl.42.9"></a><var>42.9</var>county treasurer, delegate to the county treasurer the power to abate the penalty
         provided <br/>
<a id="pl.42.10"></a><var>42.10</var>for late payment of taxes in the current year. Notwithstanding section 
         <statute_ref>270C.86</statute_ref>, if any county <br/>
<a id="pl.42.11"></a><var>42.11</var>board so elects, the county treasurer may abate the penalty on finding that the imposition
         <br/>
<a id="pl.42.12"></a><var>42.12</var>of the penalty would be unjust and unreasonable.<br/>
<a id="pl.42.13"></a><var>42.13</var>(b) The county treasurer shall abate the penalty provided for late payment of taxes
         in <br/>
<a id="pl.42.14"></a><var>42.14</var>the current year if the property tax payment is delivered by mail to the county treasurer
         and <br/>
<a id="pl.42.15"></a><var>42.15</var>the envelope containing the payment is postmarked by the United States Postal Service
         <br/>
<a id="pl.42.16"></a><var>42.16</var>within one business day of the due date prescribed under this section, but only if
         the property <br/>
<a id="pl.42.17"></a><var>42.17</var>owner requesting the abatement has not previously received an abatement of penalty
         for <br/>
<a id="pl.42.18"></a><var>42.18</var>late payment of tax under this paragraph.<br/>
<a id="pl.42.19"></a><var>42.19</var><b>EFFECTIVE DATE.</b>This section is effective for property taxes payable in 2018 and <br/>
<a id="pl.42.20"></a><var>42.20</var>thereafter.<br/>
<br/>
<a id="bill.1.26.0"></a><a id="pl.42.21"></a><var>42.21</var>    Sec. 26. Minnesota Statutes 2016, section 279.01, subdivision 3, is amended to read:<br/>
<a id="pl.42.22"></a><var>42.22</var>    Subd. 3. <b>Agricultural property.</b> (a) In the case of class 1b agricultural homestead, class <br/>
<a id="pl.42.23"></a><var>42.23</var>2a agricultural homestead property, and class 2a agricultural nonhomestead property, and <br/>
<a id="pl.42.24"></a><var>42.24</var>class 2b rural vacant land, no penalties shall attach to the second one-half property tax <br/>
<a id="pl.42.25"></a><var>42.25</var>payment as provided in this section if paid by November 15. Thereafter for class 1b <br/>
<a id="pl.42.26"></a><var>42.26</var>agricultural homestead and class 2a homestead property, on November 16 following,
         a <br/>
<a id="pl.42.27"></a><var>42.27</var>penalty of six percent shall accrue and be charged on all such unpaid taxes and on
         December <br/>
<a id="pl.42.28"></a><var>42.28</var>1 following, an additional two percent shall be charged on all such unpaid taxes.
         Thereafter <br/>
<a id="pl.42.29"></a><var>42.29</var>for class 2a agricultural nonhomestead property, on November 16 following, a penalty
         of <br/>
<a id="pl.42.30"></a><var>42.30</var>eight percent shall accrue and be charged on all such unpaid taxes and on December
         1 <br/>
<a id="pl.42.31"></a><var>42.31</var>following, an additional four percent shall be charged on all such unpaid taxes, penalties <br/>
<a id="pl.42.32"></a><var>42.32</var>shall attach as provided in subdivision 1.<br/>
<a id="pl.43.1"></a><var>43.1</var>If the owner of class 1b agricultural homestead or class 2a agricultural property
         receives <br/>
<a id="pl.43.2"></a><var>43.2</var>a consolidated property tax statement that shows only an aggregate of the taxes and
         special <br/>
<a id="pl.43.3"></a><var>43.3</var>assessments due on that property and on other property not classified as class 1b
         agricultural <br/>
<a id="pl.43.4"></a><var>43.4</var>homestead or class 2a agricultural property, the aggregate tax and special assessments
         shown <br/>
<a id="pl.43.5"></a><var>43.5</var>due on the property by the consolidated statement will be due on November 15.<br/>
<a id="pl.43.6"></a><var>43.6</var>(b) Notwithstanding paragraph (a), for taxes payable in 2010 and 2011, for any class
         2b <br/>
<a id="pl.43.7"></a><var>43.7</var>property that was subject to a second-half due date of November 15 for taxes payable
         in <br/>
<a id="pl.43.8"></a><var>43.8</var>2009, the county shall not impose, or if imposed, shall abate penalty amounts in excess
         of <br/>
<a id="pl.43.9"></a><var>43.9</var>those that would apply as if the second-half due date were November 15.<br/>
<a id="pl.43.10"></a><var>43.10</var><b>EFFECTIVE DATE.</b>(a) Except as provided in paragraph (b), this section is effective <br/>
<a id="pl.43.11"></a><var>43.11</var>beginning with taxes payable in 2018.<br/>
<a id="pl.43.12"></a><var>43.12</var>(b) For property in the northern forest region, the provisions in this section applicable
         <br/>
<a id="pl.43.13"></a><var>43.13</var>to class 2b rural vacant land are effective beginning with taxes payable in 2019.<br/>
<br/>
<a id="bill.1.27.0"></a><a id="pl.43.14"></a><var>43.14</var>    Sec. 27. Minnesota Statutes 2016, section 279.37, is amended by adding a subdivision to <br/>
<a id="pl.43.15"></a><var>43.15</var>read:<br/>
<a id="pl.43.16"></a><var>43.16</var>    Subd. 1b. <b>Conditions.</b> The county auditor may offer on a voluntary basis financial <br/>
<a id="pl.43.17"></a><var>43.17</var>literacy counseling as part of entering into a confession of judgment. The county
         auditor <br/>
<a id="pl.43.18"></a><var>43.18</var>may fund the financial literacy counseling using the fee in subdivision 8. The counseling
         <br/>
<a id="pl.43.19"></a><var>43.19</var>shall not be at taxpayer expense.<br/>
<br/>
<a id="bill.1.28.0"></a><a id="pl.43.20"></a><var>43.20</var>    Sec. 28. Minnesota Statutes 2016, section 281.17, is amended to read:<br/>
<a id="pl.43.21"></a><var>43.21</var><b>281.17 PERIOD </b><b>FOR</b><b> </b><b>OF </b><b>REDEMPTION.</b><br/>
<a id="pl.43.22"></a><var>43.22</var>(a) Except for properties described in paragraphs (b) and (c), or properties for which the <br/>
<a id="pl.43.23"></a><var>43.23</var>period of redemption has been limited under sections 
         <statute_ref>281.173</statute_ref> and 
         <statute_ref>281.174</statute_ref>, the following <br/>
<a id="pl.43.24"></a><var>43.24</var>periods for  period of redemption apply.<br/>
<a id="pl.43.25"></a><var>43.25</var>The period of redemption for all lands sold to the state at a tax judgment sale shall be <br/>
<a id="pl.43.26"></a><var>43.26</var>three years from the date of sale to the state of Minnesota.<br/>
<a id="pl.43.27"></a><var>43.27</var>The period of redemption for homesteaded lands as defined in section 
<statute_ref>273.13, subdivision <br/>
<a id="pl.43.28"></a><var>43.28</var>22
</statute_ref>, located in a targeted neighborhood as defined in Laws 1987, chapter 386, article
         6, <br/>
<a id="pl.43.29"></a><var>43.29</var>section 4, and sold to the state at a tax judgment sale is three years from the date
         of sale.<br/>
<a id="pl.43.30"></a><var>43.30</var>(b) The period of redemption for all lands located in a targeted neighborhood community <br/>
<a id="pl.43.31"></a><var>43.31</var>as defined in Laws 1987, chapter 386, article 6, section 4 section 469.201, subdivision 10, <br/>
<a id="pl.44.1"></a><var>44.1</var>except homesteaded lands as defined in section 
         <statute_ref>273.13, subdivision 22</statute_ref>, is one year from <br/>
<a id="pl.44.2"></a><var>44.2</var>the date of sale.<br/>
<a id="pl.44.3"></a><var>44.3</var>(c) The period of redemption for all real property constituting a mixed municipal solid
         <br/>
<a id="pl.44.4"></a><var>44.4</var>waste disposal facility that is a qualified facility under section 
         <statute_ref>115B.39, subdivision 1</statute_ref>, is <br/>
<a id="pl.44.5"></a><var>44.5</var>one year from the date of the sale to the state of Minnesota.<br/>
<a id="pl.44.6"></a><var>44.6</var>(d) In determining the period of redemption, the county must use the property's <br/>
<a id="pl.44.7"></a><var>44.7</var>classification and homestead classification for the assessment year on which the tax
         judgment <br/>
<a id="pl.44.8"></a><var>44.8</var>is based. Any change in the property's classification or homestead classification
         after the <br/>
<a id="pl.44.9"></a><var>44.9</var>assessment year on which the tax judgment is based does not affect the period of redemption.<br/>
<br/>
<a id="bill.1.29.0"></a><a id="pl.44.10"></a><var>44.10</var>    Sec. 29. Minnesota Statutes 2016, section 281.173, subdivision 2, is amended to read:<br/>
<a id="pl.44.11"></a><var>44.11</var>    Subd. 2. <b>Summons and complaint.</b> Any city, county, housing and redevelopment <br/>
<a id="pl.44.12"></a><var>44.12</var>authority, port authority, or economic development authority, in which the premises
         are <br/>
<a id="pl.44.13"></a><var>44.13</var>located may commence an action in district court to reduce the period otherwise allowed
         <br/>
<a id="pl.44.14"></a><var>44.14</var>for redemption under this chapter. The action must be commenced by the filing of a
         <br/>
<a id="pl.44.15"></a><var>44.15</var>complaint, naming as defendants the record fee owners or the owner's personal representative,
         <br/>
<a id="pl.44.16"></a><var>44.16</var>or the owner's heirs as determined by a court of competent jurisdiction, contract
         for deed <br/>
<a id="pl.44.17"></a><var>44.17</var>purchasers, mortgagees, assigns of any of the above, the taxpayers as shown on the
         records <br/>
<a id="pl.44.18"></a><var>44.18</var>of the county auditor, the Internal Revenue Service of the United States and the Revenue
         <br/>
<a id="pl.44.19"></a><var>44.19</var>Department of the state of Minnesota if tax liens against the owners or contract for
         deed <br/>
<a id="pl.44.20"></a><var>44.20</var>purchasers have been recorded or filed; and any other person the plaintiff determines
         should <br/>
<a id="pl.44.21"></a><var>44.21</var>be made a party. The action shall be filed in district court for the county in which
         the premises <br/>
<a id="pl.44.22"></a><var>44.22</var>are located. The complaint must identify the premises by legal description. The complaint
         <br/>
<a id="pl.44.23"></a><var>44.23</var>must allege (1) that the premises are abandoned, (2) that the tax judgment sale pursuant
         to <br/>
<a id="pl.44.24"></a><var>44.24</var>section 
         <statute_ref>280.01</statute_ref> has been made, and (3) notice of expiration of the time for redemption has <br/>
<a id="pl.44.25"></a><var>44.25</var>not been given.<br/>
<a id="pl.44.26"></a><var>44.26</var>The complaint must request an order reducing the redemption period to five weeks.
         <br/>
<a id="pl.44.27"></a><var>44.27</var>When the complaint has been filed, the court shall issue a summons commanding the
         person <br/>
<a id="pl.44.28"></a><var>44.28</var>or persons named in the complaint to appear before the court on a day and at a place
         stated <br/>
<a id="pl.44.29"></a><var>44.29</var>in the summons. The appearance date shall be not less than 15 nor more than 25 days
         from <br/>
<a id="pl.44.30"></a><var>44.30</var>the date of the issuing of the summons. A copy of the filed complaint must be attached
         to <br/>
<a id="pl.44.31"></a><var>44.31</var>the summons.<br/>
<br/>
<a id="bill.1.30.0"></a><a id="pl.45.1"></a><var>45.1</var>    Sec. 30. Minnesota Statutes 2016, section 281.174, subdivision 3, is amended to read:<br/>
<a id="pl.45.2"></a><var>45.2</var>    Subd. 3. <b>Summons and complaint.</b> Any city, county, housing and redevelopment <br/>
<a id="pl.45.3"></a><var>45.3</var>authority, port authority, or economic development authority in which the property
         is located <br/>
<a id="pl.45.4"></a><var>45.4</var>may commence an action in district court to reduce the period otherwise allowed for
         <br/>
<a id="pl.45.5"></a><var>45.5</var>redemption under this chapter from the date of the requested order. The action must
         be <br/>
<a id="pl.45.6"></a><var>45.6</var>commenced by the filing of a complaint, naming as defendants the record fee owners
         or the <br/>
<a id="pl.45.7"></a><var>45.7</var>owner's personal representative, or the owner's heirs as determined by a court of
         competent <br/>
<a id="pl.45.8"></a><var>45.8</var>jurisdiction, contract for deed purchasers, mortgagees, assigns of any of the above,
         the <br/>
<a id="pl.45.9"></a><var>45.9</var>taxpayers as shown on the records of the county auditor, the Internal Revenue Service
         of <br/>
<a id="pl.45.10"></a><var>45.10</var>the United States and the revenue department of the state of Minnesota if tax liens
         against <br/>
<a id="pl.45.11"></a><var>45.11</var>the owners or contract for deed purchasers have been recorded or filed, and any other
         person <br/>
<a id="pl.45.12"></a><var>45.12</var>the plaintiff determines should be made a party. The action shall be filed in district
         court <br/>
<a id="pl.45.13"></a><var>45.13</var>for the county in which the property is located. The complaint must identify the property
         <br/>
<a id="pl.45.14"></a><var>45.14</var>by legal description. The complaint must allege (1) that the property is vacant, (2)
         that the <br/>
<a id="pl.45.15"></a><var>45.15</var>tax judgment sale under section 
         <statute_ref>280.01</statute_ref> has been made, and (3) notice of expiration of the <br/>
<a id="pl.45.16"></a><var>45.16</var>time for redemption has not been given.<br/>
<a id="pl.45.17"></a><var>45.17</var>The complaint must request an order reducing the redemption period to five weeks.
         <br/>
<a id="pl.45.18"></a><var>45.18</var>When the complaint has been filed, the court shall issue a summons commanding the
         person <br/>
<a id="pl.45.19"></a><var>45.19</var>or persons named in the complaint to appear before the court on a day and at a place
         stated <br/>
<a id="pl.45.20"></a><var>45.20</var>in the summons. The appearance date shall be not less than 15 nor more than 25 days
         from <br/>
<a id="pl.45.21"></a><var>45.21</var>the date of the issuing of the summons, except that, when the United States of America
         is <br/>
<a id="pl.45.22"></a><var>45.22</var>a party, the date shall be set in accordance with applicable federal law. A copy of
         the filed <br/>
<a id="pl.45.23"></a><var>45.23</var>complaint must be attached to the summons.<br/>
<br/>
<a id="bill.1.31.0"></a><a id="pl.45.24"></a><var>45.24</var>    Sec. 31. <b>[281.231] MAINTENANCE; EXPENDITURE OF PUBLIC FUNDS.</b><br/>
<a id="pl.45.25"></a><var>45.25</var>If the county auditor provides notice as required by section 281.23, the state, agency,
         <br/>
<a id="pl.45.26"></a><var>45.26</var>political subdivision, or other entity that becomes the fee owner or manager of a
         property <br/>
<a id="pl.45.27"></a><var>45.27</var>as a result of forfeiture due to nonpayment of real property taxes is not required
         to expend <br/>
<a id="pl.45.28"></a><var>45.28</var>public funds to maintain any servitude, agreement, easement, or other encumbrance
         affecting <br/>
<a id="pl.45.29"></a><var>45.29</var>the property. The fee owner or manager of a property may, at its discretion, spend
         public <br/>
<a id="pl.45.30"></a><var>45.30</var>funds necessary for the maintenance, security, or management of the property.<br/>
<br/>
<a id="bill.1.32.0"></a><a id="pl.45.31"></a><var>45.31</var>    Sec. 32. <b>[281.70] LIMITED RIGHT OF ENTRY.</b><br/>
<a id="pl.45.32"></a><var>45.32</var>    Subdivision 1. <b>Limited right of entry.</b> If premises described in a real estate tax judgment <br/>
<a id="pl.45.33"></a><var>45.33</var>sale are vacant or unoccupied, the county auditor or a person acting on behalf of
         the county <br/>
<a id="pl.46.1"></a><var>46.1</var>auditor may, but is not obligated to, enter the premises to protect the premises from
         waste <br/>
<a id="pl.46.2"></a><var>46.2</var>or trespass until the county auditor is notified that the premises are occupied. An
         affidavit <br/>
<a id="pl.46.3"></a><var>46.3</var>of the sheriff, the county auditor, or a person acting on behalf of the county auditor
         describing <br/>
<a id="pl.46.4"></a><var>46.4</var>the premises and stating that the premises are vacant and unoccupied is prima facie
         evidence <br/>
<a id="pl.46.5"></a><var>46.5</var>of the facts stated in the affidavit. If the affidavit contains a legal description
         of the premises, <br/>
<a id="pl.46.6"></a><var>46.6</var>the affidavit may be recorded in the office of the county recorder or the registrar
         of titles in <br/>
<a id="pl.46.7"></a><var>46.7</var>the county where the premises are located.<br/>
<a id="pl.46.8"></a><var>46.8</var>    Subd. 2. <b>Authorized actions.</b> (a) The county auditor may take one or more of the <br/>
<a id="pl.46.9"></a><var>46.9</var>following actions to protect the premises from waste or trespass:<br/>
<a id="pl.46.10"></a><var>46.10</var>(1) install or change locks on doors and windows;<br/>
<a id="pl.46.11"></a><var>46.11</var>(2) board windows; and<br/>
<a id="pl.46.12"></a><var>46.12</var>(3) other actions to prevent or minimize damage to the premises from the elements,
         <br/>
<a id="pl.46.13"></a><var>46.13</var>vandalism, trespass, or other illegal activities.<br/>
<a id="pl.46.14"></a><var>46.14</var>(b) If the county auditor installs or changes locks on premises under paragraph (a),
         the <br/>
<a id="pl.46.15"></a><var>46.15</var>county auditor must promptly deliver a key to the premises to the taxpayer or any
         person <br/>
<a id="pl.46.16"></a><var>46.16</var>lawfully claiming through the taxpayer upon request.<br/>
<a id="pl.46.17"></a><var>46.17</var>    Subd. 3. <b>Costs.</b> Costs incurred by the county auditor in protecting the premises from <br/>
<a id="pl.46.18"></a><var>46.18</var>waste or trespass under this section may be added to the delinquent taxes due. The
         costs <br/>
<a id="pl.46.19"></a><var>46.19</var>may bear interest to the extent provided, and interest may be added to the delinquent
         taxes <br/>
<a id="pl.46.20"></a><var>46.20</var>due.<br/>
<a id="pl.46.21"></a><var>46.21</var>    Subd. 4. <b>Scope.</b> The actions authorized under this section are in addition to, and do not <br/>
<a id="pl.46.22"></a><var>46.22</var>limit or replace, any other rights or remedies available to the county auditor under
         Minnesota <br/>
<a id="pl.46.23"></a><var>46.23</var>law.<br/>
<br/>
<a id="bill.1.33.0"></a><a id="pl.46.24"></a><var>46.24</var>    Sec. 33. Minnesota Statutes 2016, section 282.01, subdivision 4, is amended to read:<br/>
<a id="pl.46.25"></a><var>46.25</var>    Subd. 4. <b>Sale</b><b>:</b><b>;</b><b> method</b><b>,</b><b>;</b><b> requirements</b><b>,</b><b>;</b><b> effects.</b> (a) The sale authorized under <br/>
<a id="pl.46.26"></a><var>46.26</var>subdivision 3 must be conducted by the county auditor at the county seat of the county
         in <br/>
<a id="pl.46.27"></a><var>46.27</var>which the parcels lie, except that in St. Louis and Koochiching Counties, the sale
         may be <br/>
<a id="pl.46.28"></a><var>46.28</var>conducted in any county facility within the county. The sale must not be for less
         than the <br/>
<a id="pl.46.29"></a><var>46.29</var>appraised value except as provided in subdivision 7a. The parcels must be sold for
         cash <br/>
<a id="pl.46.30"></a><var>46.30</var>only, unless the county board of the county has adopted a resolution providing for
         their sale <br/>
<a id="pl.46.31"></a><var>46.31</var>on terms, in which event the resolution controls with respect to the sale. When the
         sale is <br/>
<a id="pl.46.32"></a><var>46.32</var>made on terms other than for cash only (1) a payment of at least ten percent of the
         purchase <br/>
<a id="pl.46.33"></a><var>46.33</var>price must be made at the time of purchase, and the balance must be paid in no more
         than <br/>
<a id="pl.47.1"></a><var>47.1</var>ten equal annual installments, or (2) the payments must be made in accordance with
         county <br/>
<a id="pl.47.2"></a><var>47.2</var>board policy, but in no event may the board require more than 12 installments annually,
         <br/>
<a id="pl.47.3"></a><var>47.3</var>and the contract term must not be for more than ten years. Standing timber or timber
         products <br/>
<a id="pl.47.4"></a><var>47.4</var>must not be removed from these lands until an amount equal to the appraised value
         of all <br/>
<a id="pl.47.5"></a><var>47.5</var>standing timber or timber products on the lands at the time of purchase has been paid
         by <br/>
<a id="pl.47.6"></a><var>47.6</var>the purchaser. If a parcel of land bearing standing timber or timber products is sold
         at public <br/>
<a id="pl.47.7"></a><var>47.7</var>auction for more than the appraised value, the amount bid in excess of the appraised
         value <br/>
<a id="pl.47.8"></a><var>47.8</var>must be allocated between the land and the timber in proportion to their respective
         appraised <br/>
<a id="pl.47.9"></a><var>47.9</var>values. In that case, standing timber or timber products must not be removed from
         the land <br/>
<a id="pl.47.10"></a><var>47.10</var>until the amount of the excess bid allocated to timber or timber products has been
         paid in <br/>
<a id="pl.47.11"></a><var>47.11</var>addition to the appraised value of the land. The purchaser is entitled to immediate
         possession, <br/>
<a id="pl.47.12"></a><var>47.12</var>subject to the provisions of any existing valid lease made in behalf of the state.<br/>
<a id="pl.47.13"></a><var>47.13</var>(b) For sales occurring on or after July 1, 1982, the unpaid balance of the purchase price
         <br/>
<a id="pl.47.14"></a><var>47.14</var>is subject to interest at the rate determined pursuant to section 
         <statute_ref>549.09</statute_ref>. The unpaid balance <br/>
<a id="pl.47.15"></a><var>47.15</var>of the purchase price for sales occurring after December 31, 1990, is subject to interest
         at <br/>
<a id="pl.47.16"></a><var>47.16</var>the rate determined in section 
         <statute_ref>279.03, subdivision 1a</statute_ref>. The interest rate is subject to change <br/>
<a id="pl.47.17"></a><var>47.17</var>each year on the unpaid balance in the manner provided for rate changes in section
         
         <statute_ref>549.09</statute_ref> <br/>
<a id="pl.47.18"></a><var>47.18</var>or 
         <statute_ref>279.03, subdivision 1a</statute_ref>, whichever, is applicable. Interest on the unpaid contract balance <br/>
<a id="pl.47.19"></a><var>47.19</var>on sales occurring before July 1, 1982, is payable at the rate applicable to the sale
         at the <br/>
<a id="pl.47.20"></a><var>47.20</var>time that the sale occurred.<br/>
<a id="pl.47.21"></a><var>47.21</var>(c) Notwithstanding subdivision 7, a county board may by resolution provide for the
         <br/>
<a id="pl.47.22"></a><var>47.22</var>listing and sale of individual parcels by other means, including through a real estate
         broker. <br/>
<a id="pl.47.23"></a><var>47.23</var>However, if the buyer under this paragraph could have repurchased a parcel of property
         <br/>
<a id="pl.47.24"></a><var>47.24</var>under section 282.012 or 282.241, that buyer may not purchase that same parcel of
         property <br/>
<a id="pl.47.25"></a><var>47.25</var>at the sale under this subdivision for a purchase price less than the sum of all taxes,
         <br/>
<a id="pl.47.26"></a><var>47.26</var>assessments, penalties, interest, and costs due at the time of forfeiture computed
         under <br/>
<a id="pl.47.27"></a><var>47.27</var>section 282.251, and any special assessments for improvements certified as of the
         date of <br/>
<a id="pl.47.28"></a><var>47.28</var>sale. This subdivision shall be liberally construed to encourage the sale and utilization
         of <br/>
<a id="pl.47.29"></a><var>47.29</var>tax-forfeited land in order to eliminate nuisances and dangerous conditions and to
         increase <br/>
<a id="pl.47.30"></a><var>47.30</var>compliance with land use ordinances.<br/>
<br/>
<a id="bill.1.34.0"></a><a id="pl.47.31"></a><var>47.31</var>    Sec. 34. Minnesota Statutes 2016, section 282.01, subdivision 6, is amended to read:<br/>
<a id="pl.47.32"></a><var>47.32</var>    Subd. 6. <b>Duties of commissioner after sale.</b> (a) When any sale has been made by the <br/>
<a id="pl.47.33"></a><var>47.33</var>county auditor under sections 
         <statute_ref>282.01</statute_ref> to 
         <statute_ref>282.13</statute_ref>, the auditor shall immediately certify to the <br/>
<a id="pl.47.34"></a><var>47.34</var>commissioner of revenue such information relating to such sale, on such forms as the
         <br/>
<a id="pl.48.1"></a><var>48.1</var>commissioner of revenue may prescribe as will enable the commissioner of revenue to
         <br/>
<a id="pl.48.2"></a><var>48.2</var>prepare an appropriate deed if the sale is for cash, or keep necessary records if
         the sale is <br/>
<a id="pl.48.3"></a><var>48.3</var>on terms; and not later than October 31 of each year the county auditor shall submit
         to the <br/>
<a id="pl.48.4"></a><var>48.4</var>commissioner of revenue a statement of all instances wherein any payment of principal,
         <br/>
<a id="pl.48.5"></a><var>48.5</var>interest, or current taxes on lands held under certificate, due or to be paid during
         the preceding <br/>
<a id="pl.48.6"></a><var>48.6</var>calendar years, are still outstanding at the time such certificate is made. When such
         statement <br/>
<a id="pl.48.7"></a><var>48.7</var>shows that a purchaser or the purchaser's assignee is in default, the commissioner
         of revenue <br/>
<a id="pl.48.8"></a><var>48.8</var>may instruct the county board of the county in which the land is located to cancel
         said <br/>
<a id="pl.48.9"></a><var>48.9</var>certificate of sale in the manner provided by subdivision 5, provided that upon <br/>
<a id="pl.48.10"></a><var>48.10</var>recommendation of the county board, and where the circumstances are such that the
         <br/>
<a id="pl.48.11"></a><var>48.11</var>commissioner of revenue after investigation is satisfied that the purchaser has made
         every <br/>
<a id="pl.48.12"></a><var>48.12</var>effort reasonable to make payment of both the annual installment and said taxes, and
         that <br/>
<a id="pl.48.13"></a><var>48.13</var>there has been no willful neglect on the part of the purchaser in meeting these obligations,
         <br/>
<a id="pl.48.14"></a><var>48.14</var>then the commissioner of revenue may extend the time for the payment for such period
         as <br/>
<a id="pl.48.15"></a><var>48.15</var>the commissioner may deem warranted, not to exceed one year. On payment in full of
         the <br/>
<a id="pl.48.16"></a><var>48.16</var>purchase price, appropriate conveyance in fee, in such form as may be prescribed by
         the <br/>
<a id="pl.48.17"></a><var>48.17</var>attorney general, shall be issued by the commissioner of revenue, which conveyance
         must <br/>
<a id="pl.48.18"></a><var>48.18</var>be recorded by the county and shall have the force and effect of a patent from the
         state <br/>
<a id="pl.48.19"></a><var>48.19</var>subject to easements and restrictions of record at the date of the tax judgment sale,
         including, <br/>
<a id="pl.48.20"></a><var>48.20</var>but without limitation, permits for telephone and electric power lines either by underground
         <br/>
<a id="pl.48.21"></a><var>48.21</var>cable or conduit or otherwise, sewer and water lines, highways, railroads, and pipe
         lines for <br/>
<a id="pl.48.22"></a><var>48.22</var>gas, liquids, or solids in suspension.<br/>
<a id="pl.48.23"></a><var>48.23</var>(b) The commissioner of revenue shall issue an appropriate conveyance in fee upon
         the <br/>
<a id="pl.48.24"></a><var>48.24</var>receipt of a loan commitment or approval from the county auditor. For purposes of
         this <br/>
<a id="pl.48.25"></a><var>48.25</var>paragraph, "loan commitment" or "loan approval" means a written commitment or approval
         <br/>
<a id="pl.48.26"></a><var>48.26</var>to make a mortgage loan from a lender approved to make mortgage loans in Minnesota.
         <br/>
<a id="pl.48.27"></a><var>48.27</var>The conveyance shall be issued to the county auditor where the land is located. Upon
         receipt <br/>
<a id="pl.48.28"></a><var>48.28</var>of the conveyance, the county auditor shall hold the conveyance until such time as
         the <br/>
<a id="pl.48.29"></a><var>48.29</var>conveyance is requested from a title company licensed to do business in Minnesota.
         If a <br/>
<a id="pl.48.30"></a><var>48.30</var>request for the conveyance is not made within 45 days of the date the conveyance is
         issued <br/>
<a id="pl.48.31"></a><var>48.31</var>by the commissioner of revenue, the county auditor shall return the conveyance to
         the <br/>
<a id="pl.48.32"></a><var>48.32</var>commissioner. The title company making the request for the conveyance shall certify
         to the <br/>
<a id="pl.48.33"></a><var>48.33</var>county auditor that the conveyance is necessary to close the purchase of the subject
         property <br/>
<a id="pl.48.34"></a><var>48.34</var>within five days of the request. If the conveyance is delivered to the title company
         and the <br/>
<a id="pl.48.35"></a><var>48.35</var>closing does not occur within five days of the request, the title company shall immediately
         <br/>
<a id="pl.48.36"></a><var>48.36</var>return the conveyance to the county auditor, and upon receipt, the county auditor
         shall return <br/>
<a id="pl.49.1"></a><var>49.1</var>the deed to the commissioner of revenue. The commissioner of revenue shall destroy
         all <br/>
<a id="pl.49.2"></a><var>49.2</var>deeds returned by the county auditor pursuant to this subdivision.<br/>
<br/>
<a id="bill.1.35.0"></a><a id="pl.49.3"></a><var>49.3</var>    Sec. 35. Minnesota Statutes 2016, section 282.01, is amended by adding a subdivision to <br/>
<a id="pl.49.4"></a><var>49.4</var>read:<br/>
<a id="pl.49.5"></a><var>49.5</var>    Subd. 13. <b>Online auction.</b> A county board, or a county auditor if the auditor has been <br/>
<a id="pl.49.6"></a><var>49.6</var>delegated such authority under section 282.135, may sell tax-forfeited lands through
         an <br/>
<a id="pl.49.7"></a><var>49.7</var>online auction. When an online auction is used to sell tax-forfeited lands, the county
         auditor <br/>
<a id="pl.49.8"></a><var>49.8</var>shall post a physical notice of the online auction and shall publish a notice of the
         online <br/>
<a id="pl.49.9"></a><var>49.9</var>auction on its Web site not less than ten days before the online auction begins, in
         addition <br/>
<a id="pl.49.10"></a><var>49.10</var>to any other notice required.<br/>
<a id="pl.49.11"></a><var>49.11</var><b>EFFECTIVE DATE.</b>This section is effective for sales of tax-forfeited property that <br/>
<a id="pl.49.12"></a><var>49.12</var>occur on or after August 1, 2017.<br/>
<br/>
<a id="bill.1.36.0"></a><a id="pl.49.13"></a><var>49.13</var>    Sec. 36. Minnesota Statutes 2016, section 282.016, is amended to read:<br/>
<a id="pl.49.14"></a><var>49.14</var><b>282.016 PROHIBITED PURCHASERS.</b><br/>
<a id="pl.49.15"></a><var>49.15</var>(a) A county auditor, county treasurer, county attorney, court administrator of the
         district <br/>
<a id="pl.49.16"></a><var>49.16</var>court, county assessor, supervisor of assessments, deputy or clerk or an employee
         of such <br/>
<a id="pl.49.17"></a><var>49.17</var>officer, a commissioner for tax-forfeited lands or an assistant to such commissioner,
         must <br/>
<a id="pl.49.18"></a><var>49.18</var>not become a purchaser, either personally or as an agent or attorney for another person,
         of <br/>
<a id="pl.49.19"></a><var>49.19</var>the properties offered for sale under the provisions of this chapter in the county
         for which <br/>
<a id="pl.49.20"></a><var>49.20</var>the person performs duties. A person prohibited from purchasing property under this section <br/>
<a id="pl.49.21"></a><var>49.21</var>must not directly or indirectly have another person purchase it on behalf of the prohibited
         <br/>
<a id="pl.49.22"></a><var>49.22</var>purchaser for the prohibited purchaser's benefit or gain.<br/>
<a id="pl.49.23"></a><var>49.23</var>(b) Notwithstanding paragraph (a), such officer, deputy, clerk, or employee or <br/>
<a id="pl.49.24"></a><var>49.24</var>commissioner for tax-forfeited lands or assistant to such commissioner may (1) purchase
         <br/>
<a id="pl.49.25"></a><var>49.25</var>lands owned by that official at the time the state became the absolute owner thereof
         or (2) <br/>
<a id="pl.49.26"></a><var>49.26</var>bid upon and purchase forfeited property offered for sale under the alternate sale
         procedure <br/>
<a id="pl.49.27"></a><var>49.27</var>described in section 
         <statute_ref>282.01, subdivision 7a</statute_ref>.<br/>
<a id="pl.49.28"></a><var>49.28</var>(c) In addition to the persons identified in paragraph (a), a county auditor may prohibit
         <br/>
<a id="pl.49.29"></a><var>49.29</var>other persons and entities from becoming a purchaser, either personally or as an agent
         or <br/>
<a id="pl.49.30"></a><var>49.30</var>attorney for another person or entity, of the properties offered for sale under this
         chapter in <br/>
<a id="pl.49.31"></a><var>49.31</var>the following circumstances: (1) the person or entity owns another property within
         the <br/>
<a id="pl.49.32"></a><var>49.32</var>county for which there are delinquent taxes owing; (2) the person or entity has held
         a rental <br/>
<a id="pl.50.1"></a><var>50.1</var>license in the county and the license has been revoked within the last five years;
         (3) the <br/>
<a id="pl.50.2"></a><var>50.2</var>person or entity has been the vendee of a contract for purchase of a property offered
         for sale <br/>
<a id="pl.50.3"></a><var>50.3</var>under this chapter, which contract has been canceled within the last five years; or
         (4) the <br/>
<a id="pl.50.4"></a><var>50.4</var>person or entity owns another property within the county for which there is an unresolved
         <br/>
<a id="pl.50.5"></a><var>50.5</var>housing code violation, including an unpaid charge or fine.<br/>
<a id="pl.50.6"></a><var>50.6</var>(d) A person prohibited from purchasing property under this section must not directly
         <br/>
<a id="pl.50.7"></a><var>50.7</var>or indirectly have another person purchase it on behalf of the prohibited purchaser
         for the <br/>
<a id="pl.50.8"></a><var>50.8</var>prohibited purchaser's benefit or gain.<br/>
<br/>
<a id="bill.1.37.0"></a><a id="pl.50.9"></a><var>50.9</var>    Sec. 37. Minnesota Statutes 2016, section 282.018, subdivision 1, is amended to read:<br/>
<a id="pl.50.10"></a><var>50.10</var>    Subdivision 1. <b>Land on or adjacent to public waters.</b> (a) All land which is the property <br/>
<a id="pl.50.11"></a><var>50.11</var>of the state as a result of forfeiture to the state for nonpayment of taxes, regardless
         of whether <br/>
<a id="pl.50.12"></a><var>50.12</var>the land is held in trust for taxing districts, and which borders on or is adjacent
         to meandered <br/>
<a id="pl.50.13"></a><var>50.13</var>lakes and other public waters and watercourses, and the live timber growing or being
         thereon, <br/>
<a id="pl.50.14"></a><var>50.14</var>is hereby withdrawn from sale except as hereinafter provided. The authority having
         <br/>
<a id="pl.50.15"></a><var>50.15</var>jurisdiction over the timber on any such lands may sell the timber as otherwise provided
         by <br/>
<a id="pl.50.16"></a><var>50.16</var>law for cutting and removal under such conditions as the authority may prescribe in
         <br/>
<a id="pl.50.17"></a><var>50.17</var>accordance with approved, sustained yield forestry practices. The authority having
         jurisdiction <br/>
<a id="pl.50.18"></a><var>50.18</var>over the timber shall reserve such timber and impose such conditions as the authority
         deems <br/>
<a id="pl.50.19"></a><var>50.19</var>necessary for the protection of watersheds, wildlife habitat, shorelines, and scenic
         features. <br/>
<a id="pl.50.20"></a><var>50.20</var>Within the area in Cook, Lake, and St. Louis counties described in the Act of Congress
         <br/>
<a id="pl.50.21"></a><var>50.21</var>approved July 10, 1930 (46 Stat. 1020), the timber on tax-forfeited lands shall be
         subject <br/>
<a id="pl.50.22"></a><var>50.22</var>to like restrictions as are now imposed by that act on federal lands.<br/>
<a id="pl.50.23"></a><var>50.23</var>(b) Of all tax-forfeited land bordering on or adjacent to meandered lakes and other
         public <br/>
<a id="pl.50.24"></a><var>50.24</var>waters and watercourses and so withdrawn from sale, a strip two rods in width, the
         ordinary <br/>
<a id="pl.50.25"></a><var>50.25</var>high-water mark being the waterside boundary thereof, and the land side boundary thereof
         <br/>
<a id="pl.50.26"></a><var>50.26</var>being a line drawn parallel to the ordinary high-water mark and two rods distant landward
         <br/>
<a id="pl.50.27"></a><var>50.27</var>therefrom, hereby is reserved for public travel thereon, and whatever the conformation
         of <br/>
<a id="pl.50.28"></a><var>50.28</var>the shore line or conditions require, the authority having jurisdiction over such
         lands shall <br/>
<a id="pl.50.29"></a><var>50.29</var>reserve a wider strip for such purposes.<br/>
<a id="pl.50.30"></a><var>50.30</var>(c) Any tract or parcel of land which has 150 feet or less of waterfront may be sold
         by <br/>
<a id="pl.50.31"></a><var>50.31</var>the authority having jurisdiction over the land, in the manner otherwise provided
         by law <br/>
<a id="pl.50.32"></a><var>50.32</var>for the sale of such lands, if the authority determines that it is in the public interest
         to do <br/>
<a id="pl.50.33"></a><var>50.33</var>so. If the authority having jurisdiction over the land is not the commissioner of
         natural <br/>
<a id="pl.51.1"></a><var>51.1</var>resources, the land may not be offered for sale without the prior approval of the
         commissioner <br/>
<a id="pl.51.2"></a><var>51.2</var>of natural resources.<br/>
<a id="pl.51.3"></a><var>51.3</var>(d) Where the authority having jurisdiction over lands withdrawn from sale under this
         <br/>
<a id="pl.51.4"></a><var>51.4</var>section is not the commissioner of natural resources, the authority may submit proposals
         <br/>
<a id="pl.51.5"></a><var>51.5</var>for disposition of the lands to the commissioner. The commissioner of natural resources
         <br/>
<a id="pl.51.6"></a><var>51.6</var>shall evaluate the lands and their public benefits and make recommendations on the
         proposed <br/>
<a id="pl.51.7"></a><var>51.7</var>dispositions to the committees of the legislature with jurisdiction over natural resources.
         <br/>
<a id="pl.51.8"></a><var>51.8</var>The commissioner shall include any recommendations of the commissioner for disposition
         <br/>
<a id="pl.51.9"></a><var>51.9</var>of lands withdrawn from sale under this section over which the commissioner has jurisdiction.
         <br/>
<a id="pl.51.10"></a><var>51.10</var>The commissioner's recommendations may include a public sale, sale to a private party,
         <br/>
<a id="pl.51.11"></a><var>51.11</var>acquisition by the Department of Natural Resources for public purposes, or a cooperative
         <br/>
<a id="pl.51.12"></a><var>51.12</var>management agreement with, or transfer to, another unit of government.<br/>
<a id="pl.51.13"></a><var>51.13</var>(e) Notwithstanding this subdivision, a county may sell property governed by this
         section <br/>
<a id="pl.51.14"></a><var>51.14</var>upon written authorization from the commissioner of natural resources. Prior to the
         sale or <br/>
<a id="pl.51.15"></a><var>51.15</var>conveyance of lands under this subdivision, the county board must give notice of its
         intent <br/>
<a id="pl.51.16"></a><var>51.16</var>to meet for that purpose as provided in section 282.01, subdivision 1.<br/>
<br/>
<a id="bill.1.38.0"></a><a id="pl.51.17"></a><var>51.17</var>    Sec. 38. Minnesota Statutes 2016, section 282.02, is amended to read:<br/>
<a id="pl.51.18"></a><var>51.18</var><b>282.02 LIST OF LANDS FOR SALE; NOTICE</b><b>; ONLINE AUCTIONS </b><br/>
<a id="pl.51.19"></a><var>51.19</var><b>PERMITTED</b><b>.</b><br/>
<a id="pl.51.20"></a><var>51.20</var>(a) Immediately after classification and appraisal of the land, and after approval by
         the <br/>
<a id="pl.51.21"></a><var>51.21</var>commissioner of natural resources when required pursuant to section 
         <statute_ref>282.01, subdivision <br/>
<a id="pl.51.22"></a><var>51.22</var>3
         </statute_ref>, the county board shall provide and file with the county auditor a list of parcels
         of land to <br/>
<a id="pl.51.23"></a><var>51.23</var>be offered for sale. This list shall contain a description of the parcels of land
         and the appraised <br/>
<a id="pl.51.24"></a><var>51.24</var>value thereof. The auditor shall publish a notice of the intended public sale of such
         parcels <br/>
<a id="pl.51.25"></a><var>51.25</var>of land and a copy of the resolution of the county board fixing the terms of the sale,
         if other <br/>
<a id="pl.51.26"></a><var>51.26</var>than for cash only, by publication once a week for two weeks in the official newspaper
         of <br/>
<a id="pl.51.27"></a><var>51.27</var>the county, the last publication to be not less than ten days previous to the commencement
         <br/>
<a id="pl.51.28"></a><var>51.28</var>of the sale.<br/>
<a id="pl.51.29"></a><var>51.29</var>(b) The notice shall include the parcel's description and appraised value. The notice
         shall <br/>
<a id="pl.51.30"></a><var>51.30</var>also indicate the amount of any special assessments which may be the subject of a
         <br/>
<a id="pl.51.31"></a><var>51.31</var>reassessment or new assessment or which may result in the imposition of a fee or charge
         <br/>
<a id="pl.51.32"></a><var>51.32</var>pursuant to sections 
         <statute_ref>429.071, subdivision 4</statute_ref>, 
         <statute_ref>435.23</statute_ref>, and 
         <statute_ref>444.076</statute_ref>. The county auditor shall <br/>
<a id="pl.51.33"></a><var>51.33</var>also mail notice to the owners of land adjoining the parcel to be sold. For purposes
         of this <br/>
<a id="pl.51.34"></a><var>51.34</var>section, "owner" means the taxpayer as listed in the records of the county auditor.<br/>
<a id="pl.52.1"></a><var>52.1</var>(c) If the county board of St. Louis or Koochiching Counties determines that the sale <br/>
<a id="pl.52.2"></a><var>52.2</var>shall take place in a county facility other than the courthouse, the notice shall
         specify the <br/>
<a id="pl.52.3"></a><var>52.3</var>facility and its location. If the county board determines that the sale shall take place as an <br/>
<a id="pl.52.4"></a><var>52.4</var>online auction under section 282.01, subdivision 13, the notice shall specify the
         auction <br/>
<a id="pl.52.5"></a><var>52.5</var>Web site and the date of the auction.<br/>
<a id="pl.52.6"></a><var>52.6</var><b>EFFECTIVE DATE.</b>This section is effective for sales of tax-forfeited property that <br/>
<a id="pl.52.7"></a><var>52.7</var>occur on or after August 1, 2017.<br/>
<br/>
<a id="bill.1.39.0"></a><a id="pl.52.8"></a><var>52.8</var>    Sec. 39. Minnesota Statutes 2016, section 282.241, subdivision 1, is amended to read:<br/>
<a id="pl.52.9"></a><var>52.9</var>    Subdivision 1. <b>Repurchase requirements.</b> The owner at the time of forfeiture, or the <br/>
<a id="pl.52.10"></a><var>52.10</var>owner's heirs, devisees, or representatives, or any person to whom the right to pay
         taxes <br/>
<a id="pl.52.11"></a><var>52.11</var>was given by statute, mortgage, or other agreement, may repurchase any parcel of land
         <br/>
<a id="pl.52.12"></a><var>52.12</var>claimed by the state to be forfeited to the state for taxes unless before the time
         repurchase <br/>
<a id="pl.52.13"></a><var>52.13</var>is made the parcel is sold under installment payments, or otherwise, by the state
         as provided <br/>
<a id="pl.52.14"></a><var>52.14</var>by law, or is under mineral prospecting permit or lease, or proceedings have been
         commenced <br/>
<a id="pl.52.15"></a><var>52.15</var>by the state or any of its political subdivisions or by the United States to condemn
         the parcel <br/>
<a id="pl.52.16"></a><var>52.16</var>of land. The parcel of land may be repurchased for the sum of all delinquent taxes
         and <br/>
<a id="pl.52.17"></a><var>52.17</var>assessments computed under section 
         <statute_ref>282.251</statute_ref>, together with penalties, interest, and costs, <br/>
<a id="pl.52.18"></a><var>52.18</var>that accrued or would have accrued if the parcel of land had not forfeited to the
         state. Except <br/>
<a id="pl.52.19"></a><var>52.19</var>for property which was homesteaded on the date of forfeiture, repurchase is permitted
         during <br/>
<a id="pl.52.20"></a><var>52.20</var>one year six months only from the date of forfeiture, and in any case only after the adoption <br/>
<a id="pl.52.21"></a><var>52.21</var>of a resolution by the board of county commissioners determining that by repurchase
         undue <br/>
<a id="pl.52.22"></a><var>52.22</var>hardship or injustice resulting from the forfeiture will be corrected, or that permitting
         the <br/>
<a id="pl.52.23"></a><var>52.23</var>repurchase will promote the use of the lands that will best serve the public interest.
         If the <br/>
<a id="pl.52.24"></a><var>52.24</var>county board has good cause to believe that a repurchase installment payment plan
         for a <br/>
<a id="pl.52.25"></a><var>52.25</var>particular parcel is unnecessary and not in the public interest, the county board
         may require <br/>
<a id="pl.52.26"></a><var>52.26</var>as a condition of repurchase that the entire repurchase price be paid at the time
         of repurchase. <br/>
<a id="pl.52.27"></a><var>52.27</var>A repurchase is subject to any easement, lease, or other encumbrance granted by the
         state <br/>
<a id="pl.52.28"></a><var>52.28</var>before the repurchase, and if the land is located within a restricted area established
         by any <br/>
<a id="pl.52.29"></a><var>52.29</var>county under Laws 1939, chapter 340, the repurchase must not be permitted unless the
         <br/>
<a id="pl.52.30"></a><var>52.30</var>resolution approving the repurchase is adopted by the unanimous vote of the board
         of county <br/>
<a id="pl.52.31"></a><var>52.31</var>commissioners.<br/>
<a id="pl.52.32"></a><var>52.32</var>The person seeking to repurchase under this section shall pay all maintenance costs
         <br/>
<a id="pl.52.33"></a><var>52.33</var>incurred by the county auditor during the time the property was tax-forfeited.<br/>
<a id="pl.52.34"></a><var>52.34</var><b>EFFECTIVE DATE.</b>This section is effective January 1, 2018.<br/>
<br/>
<a id="bill.1.40.0"></a><a id="pl.53.1"></a><var>53.1</var>    Sec. 40. Minnesota Statutes 2016, section 282.322, is amended to read:<br/>
<a id="pl.53.2"></a><var>53.2</var><b>282.322 FORFEITED LANDS LIST.</b><br/>
<a id="pl.53.3"></a><var>53.3</var>The county board of any county may file a list of forfeited lands with the county
         auditor, <br/>
<a id="pl.53.4"></a><var>53.4</var>if the board is of the opinion that such lands may be acquired by the state or any
         municipal <br/>
<a id="pl.53.5"></a><var>53.5</var>subdivision thereof of the state for public purposes. Upon the filing of such the list of <br/>
<a id="pl.53.6"></a><var>53.6</var>forfeited lands, the county auditor shall withhold said lands from repurchase. If no proceeding <br/>
<a id="pl.53.7"></a><var>53.7</var>shall be is started to acquire such lands by the state or some municipal subdivision thereof <br/>
<a id="pl.53.8"></a><var>53.8</var>of the state within one year after the filing of such the list of forfeited lands, the county <br/>
<a id="pl.53.9"></a><var>53.9</var>board shall withdraw said the list and thereafter, if the property was classified as <br/>
<a id="pl.53.10"></a><var>53.10</var>nonhomestead at the time of forfeiture, the owner shall have one year not more than six <br/>
<a id="pl.53.11"></a><var>53.11</var>months in which to repurchase.<br/>
<a id="pl.53.12"></a><var>53.12</var><b>EFFECTIVE DATE.</b>This section is effective January 1, 2018.<br/>
<br/>
<a id="bill.1.41.0"></a><a id="pl.53.13"></a><var>53.13</var>    Sec. 41. Minnesota Statutes 2016, section 290A.03, subdivision 13, is amended to read:<br/>
<a id="pl.53.14"></a><var>53.14</var>    Subd. 13. <b>Property taxes payable.</b> "Property taxes payable" means the property tax <br/>
<a id="pl.53.15"></a><var>53.15</var>exclusive of special assessments, penalties, and interest payable on a claimant's
         homestead <br/>
<a id="pl.53.16"></a><var>53.16</var>after deductions made under sections 
         <statute_ref>273.135</statute_ref>, 
         <statute_ref>273.1384</statute_ref>, 
         <statute_ref>273.1391</statute_ref>, 
         <statute_ref>273.42, subdivision 2</statute_ref>, <br/>
<a id="pl.53.17"></a><var>53.17</var>and any other state paid property tax credits in any calendar year, and after any
         refund <br/>
<a id="pl.53.18"></a><var>53.18</var>claimed and allowable under section 
         <statute_ref>290A.04, subdivision 2h</statute_ref>, that is first payable in the <br/>
<a id="pl.53.19"></a><var>53.19</var>year that the property tax is payable. In the case of a claimant who makes ground
         lease <br/>
<a id="pl.53.20"></a><var>53.20</var>payments, "property taxes payable" includes the amount of the payments directly attributable
         <br/>
<a id="pl.53.21"></a><var>53.21</var>to the property taxes assessed against the parcel on which the house is located. No
         <br/>
<a id="pl.53.22"></a><var>53.22</var>apportionment or reduction of the "property taxes payable" shall be required for the
         use of <br/>
<a id="pl.53.23"></a><var>53.23</var>a portion of the claimant's homestead for a business purpose if the claimant does
         not deduct <br/>
<a id="pl.53.24"></a><var>53.24</var>any business depreciation expenses for the use of a portion of the homestead in the
         <br/>
<a id="pl.53.25"></a><var>53.25</var>determination of federal adjusted gross income. For homesteads which are manufactured
         <br/>
<a id="pl.53.26"></a><var>53.26</var>homes as defined in section 
         <statute_ref>273.125, subdivision 8</statute_ref>, and for homesteads which are including <br/>
<a id="pl.53.27"></a><var>53.27</var>manufactured homes located in a manufactured home community owned by a cooperative
         <br/>
<a id="pl.53.28"></a><var>53.28</var>organized under chapter 308A or 308B, and park trailers taxed as manufactured homes <br/>
<a id="pl.53.29"></a><var>53.29</var>under section 
         <statute_ref>168.012, subdivision 9</statute_ref>, "property taxes payable" shall also include 17 percent <br/>
<a id="pl.53.30"></a><var>53.30</var>of the gross rent paid in the preceding year for the site on which the homestead is
         located. <br/>
<a id="pl.53.31"></a><var>53.31</var>When a homestead is owned by two or more persons as joint tenants or tenants in common,
         <br/>
<a id="pl.53.32"></a><var>53.32</var>such tenants shall determine between them which tenant may claim the property taxes
         <br/>
<a id="pl.53.33"></a><var>53.33</var>payable on the homestead. If they are unable to agree, the matter shall be referred
         to the <br/>
<a id="pl.54.1"></a><var>54.1</var>commissioner of revenue whose decision shall be final. Property taxes are considered
         payable <br/>
<a id="pl.54.2"></a><var>54.2</var>in the year prescribed by law for payment of the taxes.<br/>
<a id="pl.54.3"></a><var>54.3</var>In the case of a claim relating to "property taxes payable," the claimant must have
         owned <br/>
<a id="pl.54.4"></a><var>54.4</var>and occupied the homestead on January 2 of the year in which the tax is payable and
         (i) the <br/>
<a id="pl.54.5"></a><var>54.5</var>property must have been classified as homestead property pursuant to section 
         <statute_ref>273.124</statute_ref>, on <br/>
<a id="pl.54.6"></a><var>54.6</var>or before December 15 of the assessment year to which the "property taxes payable"
         relate; <br/>
<a id="pl.54.7"></a><var>54.7</var>or (ii) the claimant must provide documentation from the local assessor that application
         for <br/>
<a id="pl.54.8"></a><var>54.8</var>homestead classification has been made on or before December 15 of the year in which
         the <br/>
<a id="pl.54.9"></a><var>54.9</var>"property taxes payable" were payable and that the assessor has approved the application.<br/>
<a id="pl.54.10"></a><var>54.10</var><b>EFFECTIVE DATE.</b>This section is effective beginning with claims for taxes payable <br/>
<a id="pl.54.11"></a><var>54.11</var>in 2018.<br/>
<br/>
<a id="bill.1.42.0"></a><a id="pl.54.12"></a><var>54.12</var>    Sec. 42. Minnesota Statutes 2016, section 473H.09, is amended to read:<br/>
<a id="pl.54.13"></a><var>54.13</var><b>473H.09 EARLY TERMINATION.</b><br/>
<a id="pl.54.14"></a><var>54.14</var>    Subdivision 1. <b>Public emergency.</b> Termination of an agricultural preserve earlier than <br/>
<a id="pl.54.15"></a><var>54.15</var>a date derived through application of section 
         <statute_ref>473H.08</statute_ref> may be permitted only in the event <br/>
<a id="pl.54.16"></a><var>54.16</var>of a public emergency upon petition from the owner or authority to the governor. The
         <br/>
<a id="pl.54.17"></a><var>54.17</var>determination of a public emergency shall be by the governor through executive order
         <br/>
<a id="pl.54.18"></a><var>54.18</var>pursuant to sections 
         <statute_ref>4.035</statute_ref> and 
         <statute_ref>12.01</statute_ref> to 
         <statute_ref>12.46</statute_ref>. The executive order shall identify the preserve, <br/>
<a id="pl.54.19"></a><var>54.19</var>the reasons requiring the action and the date of termination.<br/>
<a id="pl.54.20"></a><var>54.20</var>    Subd. 2. <b>Death of owner.</b> (a) Within 365 days of the death of an owner, an owner's <br/>
<a id="pl.54.21"></a><var>54.21</var>spouse, or other qualifying person, the surviving owner may elect to terminate the
         agricultural <br/>
<a id="pl.54.22"></a><var>54.22</var>preserve and the covenant allowing the land to be enrolled as an agricultural preserve
         by <br/>
<a id="pl.54.23"></a><var>54.23</var>notifying the authority on a form provided by the commissioner of agriculture. Termination
         <br/>
<a id="pl.54.24"></a><var>54.24</var>of a covenant under this subdivision must be executed and acknowledged in the manner
         <br/>
<a id="pl.54.25"></a><var>54.25</var>required by law to execute and acknowledge a deed.<br/>
<a id="pl.54.26"></a><var>54.26</var>(b) For purposes of this subdivision, the following definitions apply:<br/>
<a id="pl.54.27"></a><var>54.27</var>(1) "qualifying person" includes a partner, shareholder, trustee for a trust that
         the decedent <br/>
<a id="pl.54.28"></a><var>54.28</var>was the settlor or a beneficiary of, or member of an entity permitted to own agricultural
         <br/>
<a id="pl.54.29"></a><var>54.29</var>land and engage in farming under section 500.24 that owned the agricultural preserve;
         and<br/>
 <a id="pl.54.30"></a><var>54.30</var>(2) "surviving owner" includes the executor of the estate of the decedent, trustee
         for a <br/>
<a id="pl.54.31"></a><var>54.31</var>trust that the decedent was the settlor or a beneficiary of, or an entity permitted
         to own farm <br/>
<a id="pl.54.32"></a><var>54.32</var>land under section 500.24 of which the decedent was a partner, shareholder, or member.<br/>
<a id="pl.55.1"></a><var>55.1</var>(c) When an agricultural preserve is terminated under this subdivision, the property
         is <br/>
<a id="pl.55.2"></a><var>55.2</var>subject to additional taxes in an amount equal to 50 percent of the taxes actually
         levied <br/>
<a id="pl.55.3"></a><var>55.3</var>against the property for the current taxes payable year. The additional taxes are
         extended <br/>
<a id="pl.55.4"></a><var>55.4</var>against the property on the tax list for taxes payable in the current year. The additional
         taxes <br/>
<a id="pl.55.5"></a><var>55.5</var>must be distributed among the jurisdictions levying taxes on the property in proportion
         to <br/>
<a id="pl.55.6"></a><var>55.6</var>the current year's taxes.<br/>
<a id="pl.55.7"></a><var>55.7</var><b>EFFECTIVE DATE.</b>This section is effective July 1, 2017.<br/>
<br/>
<a id="bill.1.43.0"></a><a id="pl.55.8"></a><var>55.8</var>    Sec. 43. Minnesota Statutes 2016, section 473H.17, subdivision 1a, is amended to read:<br/>
<a id="pl.55.9"></a><var>55.9</var>    Subd. 1a. <b>Allowed commercial and industrial operations.</b> (a) Commercial and industrial <br/>
<a id="pl.55.10"></a><var>55.10</var>operations are not allowed on land within an agricultural preserve except:<br/>
<a id="pl.55.11"></a><var>55.11</var>(1) small on-farm commercial or industrial operations normally associated with and
         <br/>
<a id="pl.55.12"></a><var>55.12</var>important to farming in the agricultural preserve area;<br/>
<a id="pl.55.13"></a><var>55.13</var>(2) storage use of existing farm buildings that does not disrupt the integrity of
         the <br/>
<a id="pl.55.14"></a><var>55.14</var>agricultural preserve; and<br/>
<a id="pl.55.15"></a><var>55.15</var>(3) small commercial use of existing farm buildings for trades not disruptive to the
         <br/>
<a id="pl.55.16"></a><var>55.16</var>integrity of the agricultural preserve such as a carpentry shop, small scale mechanics
         shop, <br/>
<a id="pl.55.17"></a><var>55.17</var>and similar activities that a farm operator might conduct.; and<br/>
<a id="pl.55.18"></a><var>55.18</var>(4) wireless communication installments and related equipment and structure capable
         <br/>
<a id="pl.55.19"></a><var>55.19</var>of providing technology potentially beneficial to farming activities.<br/>
<a id="pl.55.20"></a><var>55.20</var>(b) For purposes of paragraph (a), clauses (2) and (3), "existing" in paragraph (a), clauses <br/>
<a id="pl.55.21"></a><var>55.21</var>(2) and (3), means existing on August 1, 1987.<br/>
<a id="pl.55.22"></a><var>55.22</var><b>EFFECTIVE DATE.</b>This section is effective the day following enactment.<br/>
<br/>
<a id="bill.1.44.0"></a><a id="pl.55.23"></a><var>55.23</var>    Sec. 44. Minnesota Statutes 2016, section 504B.285, subdivision 1, is amended to read:<br/>
<a id="pl.55.24"></a><var>55.24</var>    Subdivision 1. <b>Grounds.</b> (a) The person entitled to the premises may recover possession <br/>
<a id="pl.55.25"></a><var>55.25</var>by eviction when:<br/>
<a id="pl.55.26"></a><var>55.26</var>(1) any person holds over real property:<br/>
<a id="pl.55.27"></a><var>55.27</var>(i) after a sale of the property on an execution or judgment; or<br/>
<a id="pl.55.28"></a><var>55.28</var>(ii) after the expiration of the time for redemption on foreclosure of a mortgage,
         or after <br/>
<a id="pl.55.29"></a><var>55.29</var>termination of contract to convey the property; or<br/>
<a id="pl.55.30"></a><var>55.30</var>(iii) after the expiration of the time for redemption on a real estate tax judgment
         sale;<br/>
<a id="pl.56.1"></a><var>56.1</var>(2) any person holds over real property after termination of the time for which it
         is <br/>
<a id="pl.56.2"></a><var>56.2</var>demised or leased to that person or to the persons under whom that person holds possession,
         <br/>
<a id="pl.56.3"></a><var>56.3</var>contrary to the conditions or covenants of the lease or agreement under which that
         person <br/>
<a id="pl.56.4"></a><var>56.4</var>holds, or after any rent becomes due according to the terms of such lease or agreement;
         or<br/>
<a id="pl.56.5"></a><var>56.5</var>(3) any tenant at will holds over after the termination of the tenancy by notice to
         quit.<br/>
<a id="pl.56.6"></a><var>56.6</var>(b) A landlord may not commence an eviction action against a tenant or authorized
         <br/>
<a id="pl.56.7"></a><var>56.7</var>occupant solely on the basis that the tenant or authorized occupant has been the victim
         of <br/>
<a id="pl.56.8"></a><var>56.8</var>any of the acts listed in section 
         <statute_ref>504B.206, subdivision 1</statute_ref>, paragraph (a). Nothing in this <br/>
<a id="pl.56.9"></a><var>56.9</var>paragraph should be construed to prohibit an eviction action based on a breach of
         the lease.<br/>
<br/>
<a id="bill.1.45.0"></a><a id="pl.56.10"></a><var>56.10</var>    Sec. 45. Minnesota Statutes 2016, section 504B.365, subdivision 3, is amended to read:<br/>
<a id="pl.56.11"></a><var>56.11</var>    Subd. 3. <b>Removal and storage of property.</b> (a) If the defendant's personal property is <br/>
<a id="pl.56.12"></a><var>56.12</var>to be stored in a place other than the premises, the officer shall remove all personal
         property <br/>
<a id="pl.56.13"></a><var>56.13</var>of the defendant at the expense of the plaintiff.<br/>
<a id="pl.56.14"></a><var>56.14</var>(b) The defendant must make immediate payment for all expenses of removing personal
         <br/>
<a id="pl.56.15"></a><var>56.15</var>property from the premises. If the defendant fails or refuses to do so, the plaintiff
         has a lien <br/>
<a id="pl.56.16"></a><var>56.16</var>on all the personal property for the reasonable costs and expenses incurred in removing,
         <br/>
<a id="pl.56.17"></a><var>56.17</var>caring for, storing, and transporting it to a suitable storage place.<br/>
<a id="pl.56.18"></a><var>56.18</var>(c) The plaintiff may enforce the lien by detaining the personal property until paid.
         If <br/>
<a id="pl.56.19"></a><var>56.19</var>no payment has been made for 60 days after the execution of the order to vacate, the
         plaintiff <br/>
<a id="pl.56.20"></a><var>56.20</var>may dispose of the property or hold a public sale as provided in sections 
         <statute_ref>514.18</statute_ref> to 
         <statute_ref>514.22</statute_ref>.<br/>
<a id="pl.56.21"></a><var>56.21</var>(d) If the defendant's personal property is to be stored on the premises, the officer
         shall <br/>
<a id="pl.56.22"></a><var>56.22</var>enter the premises, breaking in if necessary, and the plaintiff may remove the defendant's
         <br/>
<a id="pl.56.23"></a><var>56.23</var>personal property. Section 
         <statute_ref>504B.271</statute_ref> applies to personal property removed under this <br/>
<a id="pl.56.24"></a><var>56.24</var>paragraph. The plaintiff must prepare an inventory and mail a copy of the inventory
         to the <br/>
<a id="pl.56.25"></a><var>56.25</var>defendant's last known address or, if the defendant has provided a different address,
         to the <br/>
<a id="pl.56.26"></a><var>56.26</var>address provided. The inventory must be prepared, signed, and dated in the presence
         of the <br/>
<a id="pl.56.27"></a><var>56.27</var>officer and must include the following:<br/>
<a id="pl.56.28"></a><var>56.28</var>(1) a list of the items of personal property and a description of their condition;<br/>
<a id="pl.56.29"></a><var>56.29</var>(2) the date, the signature of the plaintiff or the plaintiff's agent, and the name
         and <br/>
<a id="pl.56.30"></a><var>56.30</var>telephone number of a person authorized to release the personal property; and<br/>
<a id="pl.56.31"></a><var>56.31</var>(3) the name and badge number of the officer.<br/>
<a id="pl.56.32"></a><var>56.32</var>(e) The officer must retain a copy of the inventory.<br/>
<a id="pl.57.1"></a><var>57.1</var>(f) The plaintiff is responsible for the proper removal, storage, and care of the
         defendant's <br/>
<a id="pl.57.2"></a><var>57.2</var>personal property and is liable for damages for loss of or injury to it caused by
         the plaintiff's <br/>
<a id="pl.57.3"></a><var>57.3</var>failure to exercise the same care that a reasonably careful person would exercise
         under <br/>
<a id="pl.57.4"></a><var>57.4</var>similar circumstances.<br/>
<a id="pl.57.5"></a><var>57.5</var>(g) The plaintiff shall notify the defendant of the date and approximate time the
         officer <br/>
<a id="pl.57.6"></a><var>57.6</var>is scheduled to remove the defendant, family, and personal property from the premises.
         The <br/>
<a id="pl.57.7"></a><var>57.7</var>notice must be sent by first class mail. In addition, the plaintiff must make a good
         faith <br/>
<a id="pl.57.8"></a><var>57.8</var>effort to notify the defendant by telephone. The notice must be mailed as soon as
         the <br/>
<a id="pl.57.9"></a><var>57.9</var>information regarding the date and approximate time the officer is scheduled to enforce
         the <br/>
<a id="pl.57.10"></a><var>57.10</var>order is known to the plaintiff, except that the scheduling of the officer to enforce
         the order <br/>
<a id="pl.57.11"></a><var>57.11</var>need not be delayed because of the notice requirement. The notice must inform the
         defendant <br/>
<a id="pl.57.12"></a><var>57.12</var>that the defendant and the defendant's personal property will be removed from the
         premises <br/>
<a id="pl.57.13"></a><var>57.13</var>if the defendant has not vacated the premises by the time specified in the notice.<br/>
<br/>
<a id="bill.1.46.0"></a><a id="pl.57.14"></a><var>57.14</var>    Sec. 46. Laws 1996, chapter 471, article 3, section 51, is amended to read:<br/>
<a id="pl.57.15"></a><var>57.15</var>    Sec. 51. <b>RECREATION LEVY FOR SAWYER BY CARLTON COUNTY.</b><br/>
<a id="pl.57.16"></a><var>57.16</var>    Subdivision 1. <b>Levy authorized.</b> Notwithstanding other law to the contrary, the Carlton <br/>
<a id="pl.57.17"></a><var>57.17</var>county board of commissioners may levy in and for the unorganized township of Sawyer
         <br/>
<a id="pl.57.18"></a><var>57.18</var>an amount up to $1,500 annually for recreational purposes, beginning with taxes payable <br/>
<a id="pl.57.19"></a><var>57.19</var>in 1997 and ending with taxes payable in 2006.<br/>
<a id="pl.57.20"></a><var>57.20</var>    Subd. 2. <b>Effective date.</b> This section is effective June 1, 1996, without local approval.<br/>
<a id="pl.57.21"></a><var>57.21</var><b>EFFECTIVE DATE.</b>This section applies to taxes payable in 2018 and thereafter, and <br/>
<a id="pl.57.22"></a><var>57.22</var>is effective the day after the Carlton County Board of Commissioners and its chief
         clerical <br/>
<a id="pl.57.23"></a><var>57.23</var>officer timely complete their compliance with section 645.021, subdivisions 2 and
         3.<br/>
<br/>
<a id="bill.1.47.0"></a><a id="pl.57.24"></a><var>57.24</var>    Sec. 47. <b>LEGISLATIVE PROPERTY TAX REFORM WORKING GROUP.</b><br/>
<a id="pl.57.25"></a><var>57.25</var>    Subdivision 1. <b>Membership.</b> (a) The Legislative Property Tax Reform Working Group <br/>
<a id="pl.57.26"></a><var>57.26</var>is created and consists of the following members:<br/>
<a id="pl.57.27"></a><var>57.27</var>(1) two representatives appointed by the chair of the tax committee of the house of
         <br/>
<a id="pl.57.28"></a><var>57.28</var>representatives;<br/>
<a id="pl.57.29"></a><var>57.29</var>(2) two representatives appointed by the minority leader of the tax committee of the
         <br/>
<a id="pl.57.30"></a><var>57.30</var>house of representatives;<br/>
<a id="pl.57.31"></a><var>57.31</var>(3) two senators appointed by the chair of the senate tax committee; and<br/>
<a id="pl.58.1"></a><var>58.1</var>(4) two senators appointed by the minority leader of the senate tax committee.<br/>
<a id="pl.58.2"></a><var>58.2</var>(b) Any vacancy shall be filled by appointment of the appointing authority for the
         vacating <br/>
<a id="pl.58.3"></a><var>58.3</var>member.<br/>
<a id="pl.58.4"></a><var>58.4</var>(c) Members shall be appointed by July 1, 2017.<br/>
<a id="pl.58.5"></a><var>58.5</var>    Subd. 2. <b>Duties.</b> The working group must perform the duties described in section 48.<br/>
<a id="pl.58.6"></a><var>58.6</var>    Subd. 3. <b>First meeting; chair.</b> The first appointee of the chair of the house of <br/>
<a id="pl.58.7"></a><var>58.7</var>representatives tax committee must convene the initial meeting of the working group
         by <br/>
<a id="pl.58.8"></a><var>58.8</var>July 21, 2017. The members of the working group must elect a chair and vice-chair
         from <br/>
<a id="pl.58.9"></a><var>58.9</var>the members of the working group at the first meeting.<br/>
<a id="pl.58.10"></a><var>58.10</var>    Subd. 4. <b>Staff.</b> Legislative staff of the house of representatives and senate shall provide <br/>
<a id="pl.58.11"></a><var>58.11</var>administrative and research support. The working group may request the assistance
         of staff <br/>
<a id="pl.58.12"></a><var>58.12</var>from the Department of Revenue and Department of Education as necessary to facilitate
         its <br/>
<a id="pl.58.13"></a><var>58.13</var>work.<br/>
<a id="pl.58.14"></a><var>58.14</var>    Subd. 5. <b>Report.</b> The working group must submit a report by February 15, 2018, to the <br/>
<a id="pl.58.15"></a><var>58.15</var>chairs and ranking minority members of the committees in the senate and house of <br/>
<a id="pl.58.16"></a><var>58.16</var>representatives with primary jurisdiction over taxes, presenting two or more alternatives
         <br/>
<a id="pl.58.17"></a><var>58.17</var>for reform of Minnesota's property tax system.<br/>
 <a id="pl.58.18"></a><var>58.18</var>    Subd. 6. <b>Sunset.</b> The working group shall sunset the day following the submission of <br/>
<a id="pl.58.19"></a><var>58.19</var>the report under subdivision 5.<br/>
<a id="pl.58.20"></a><var>58.20</var><b>EFFECTIVE DATE.</b>This section is effective the day following final enactment.<br/>
<br/>
<a id="bill.1.48.0"></a><a id="pl.58.21"></a><var>58.21</var>    Sec. 48. <b>PROPOSALS FOR REFORM OF MINNESOTA'S PROPERTY TAX </b><br/>
<a id="pl.58.22"></a><var>58.22</var><b>SYSTEM.</b><br/>
<a id="pl.58.23"></a><var>58.23</var>The Legislative Property Tax Reform Working Group must develop proposals to <br/>
<a id="pl.58.24"></a><var>58.24</var>restructure Minnesota's property tax system for legislative consideration. The proposals
         <br/>
<a id="pl.58.25"></a><var>58.25</var>must provide for a system that reduces the complexity and cost of Minnesota's property
         tax <br/>
<a id="pl.58.26"></a><var>58.26</var>system to increase transparency and understanding for taxpayers and assessors while
         <br/>
<a id="pl.58.27"></a><var>58.27</var>minimizing the number of properties that experience severe tax changes. The proposals
         <br/>
<a id="pl.58.28"></a><var>58.28</var>must include, but are not limited to, a reduction in the number of classifications
         and tiers <br/>
<a id="pl.58.29"></a><var>58.29</var>in the current property tax system. The proposals may include a transition period
         of up to <br/>
<a id="pl.58.30"></a><var>58.30</var>five years before the final system elements are fully operational. At least one proposal
         must <br/>
<a id="pl.58.31"></a><var>58.31</var>be developed where the highest estimated net state cost does not exceed $250,000,000
         in <br/>
<a id="pl.58.32"></a><var>58.32</var>the first year that the proposal is fully phased in. At least one proposal must be
         developed <br/>
<a id="pl.59.1"></a><var>59.1</var>where the highest estimated net state cost does not exceed $500,000,000 in the first
         year <br/>
<a id="pl.59.2"></a><var>59.2</var>that the proposal is fully phased in. Each proposal should estimate the administrative
         cost <br/>
<a id="pl.59.3"></a><var>59.3</var>savings to county governments and to the state government.<br/>
<a id="pl.59.4"></a><var>59.4</var><b>EFFECTIVE DATE.</b>This section is effective the day following final enactment.<br/>
<br/>
<a id="bill.1.49.0"></a><a id="pl.59.5"></a><var>59.5</var>    Sec. 49. <b> REPEALER.</b><br/>
<a id="pl.59.6"></a><var>59.6</var>Minnesota Statutes 2016, sections 270C.9901; and 281.22, are repealed.<br/>
<a id="pl.59.7"></a><var>59.7</var><b>EFFECTIVE DATE.</b>This section is effective the day following final enactment.<br/>
<br/>
<a id="bill.2.0.0"></a>

<a id="bill.2.1.0"></a><a id="pl.59.10"></a><var>59.10</var>    Section 1. Minnesota Statutes 2016, section 123B.63, subdivision 3, is amended to read:<br/>
<a id="pl.59.11"></a><var>59.11</var>    Subd. 3. <b>Capital project levy referendum.</b> (a) A district may levy the local tax rate <br/>
<a id="pl.59.12"></a><var>59.12</var>approved by a majority of the electors voting on the question to provide funds for
         an approved <br/>
<a id="pl.59.13"></a><var>59.13</var>project. The election must take place no more than five years before the estimated
         date of <br/>
<a id="pl.59.14"></a><var>59.14</var>commencement of the project. The referendum must may be held on a date set called by <br/>
<a id="pl.59.15"></a><var>59.15</var>the board and, except as provided in paragraph (g), must be held on the first Tuesday after
         <br/>
<a id="pl.59.16"></a><var>59.16</var>the first Monday in November in either an even-numbered or odd-numbered year. A district <br/>
<a id="pl.59.17"></a><var>59.17</var>must meet the requirements of section 123B.71 for projects funded under this section.
         If a <br/>
<a id="pl.59.18"></a><var>59.18</var>review and comment is required under section 123B.71, subdivision 8, a referendum
         for a <br/>
<a id="pl.59.19"></a><var>59.19</var>project not receiving a positive review and comment by the commissioner must be approved
         <br/>
<a id="pl.59.20"></a><var>59.20</var>by at least 60 percent of the voters at the election.<br/>
<a id="pl.59.21"></a><var>59.21</var>(b) The A referendum may be called by the school board and under this subdivision may <br/>
<a id="pl.59.22"></a><var>59.22</var>be held:<br/>
<a id="pl.59.23"></a><var>59.23</var>    (1) separately, before an election for the issuance of obligations for the project
         under <br/>
<a id="pl.59.24"></a><var>59.24</var>chapter 475; or<br/>
<a id="pl.59.25"></a><var>59.25</var>    (2) in conjunction with an election for the issuance of obligations for the project
         under <br/>
<a id="pl.59.26"></a><var>59.26</var>chapter 475; or<br/>
<a id="pl.59.27"></a><var>59.27</var>    (3) notwithstanding section 
         <statute_ref>475.59</statute_ref>, as a conjunctive question authorizing both the capital <br/>
<a id="pl.59.28"></a><var>59.28</var>project levy and the issuance of obligations for the project under chapter 475. Any
         obligations <br/>
<a id="pl.59.29"></a><var>59.29</var>authorized for a project may be issued within five years of the date of the election.<br/>
<a id="pl.59.30"></a><var>59.30</var>    (c) The ballot must provide a general description of the proposed project, state the
         <br/>
<a id="pl.59.31"></a><var>59.31</var>estimated total cost of the project, state whether the project has received a positive
         or negative <br/>
<a id="pl.60.1"></a><var>60.1</var>review and comment from the commissioner, state the maximum amount of the capital
         <br/>
<a id="pl.60.2"></a><var>60.2</var>project levy as a percentage of net tax capacity, state the amount that will be raised
         by that <br/>
<a id="pl.60.3"></a><var>60.3</var>local tax rate in the first year it is to be levied, and state the maximum number
         of years that <br/>
<a id="pl.60.4"></a><var>60.4</var>the levy authorization will apply.<br/>
<a id="pl.60.5"></a><var>60.5</var>    The ballot must contain a textual portion with the information required in this section
         <br/>
<a id="pl.60.6"></a><var>60.6</var>and a question stating substantially the following:<br/>
<a id="pl.60.7"></a><var>60.7</var>    "Shall the capital project levy proposed by the board of .......... School District
         No. .......... <br/>
<a id="pl.60.8"></a><var>60.8</var>be approved?"<br/>
<a id="pl.60.9"></a><var>60.9</var>    If approved, the amount provided by the approved local tax rate applied to the net
         tax <br/>
<a id="pl.60.10"></a><var>60.10</var>capacity for the year preceding the year the levy is certified may be certified for
         the number <br/>
<a id="pl.60.11"></a><var>60.11</var>of years, not to exceed ten, approved.<br/>
<a id="pl.60.12"></a><var>60.12</var>(d) If the district proposes a new capital project to begin at the time the existing
         capital <br/>
<a id="pl.60.13"></a><var>60.13</var>project expires and at the same maximum tax rate, the general description on the ballot
         may <br/>
<a id="pl.60.14"></a><var>60.14</var>state that the capital project levy is being renewed and that the tax rate is not
         being increased <br/>
<a id="pl.60.15"></a><var>60.15</var>from the previous year's rate. An election to renew authority under this paragraph
         may be <br/>
<a id="pl.60.16"></a><var>60.16</var>called at any time that is otherwise authorized by this subdivision. The ballot notice
         required <br/>
<a id="pl.60.17"></a><var>60.17</var>under section 
         <statute_ref>275.60</statute_ref> may be modified to read:<br/>
<a id="pl.60.18"></a><var>60.18</var>"BY VOTING YES ON THIS BALLOT QUESTION, YOU ARE VOTING TO RENEW <br/>
<a id="pl.60.19"></a><var>60.19</var>AN EXISTING CAPITAL PROJECTS REFERENDUM THAT IS SCHEDULED TO <br/>
<a id="pl.60.20"></a><var>60.20</var>EXPIRE."<br/>
<a id="pl.60.21"></a><var>60.21</var>    (e) In the event a conjunctive question proposes to authorize both the capital project
         <br/>
<a id="pl.60.22"></a><var>60.22</var>levy and the issuance of obligations for the project, appropriate language authorizing
         the <br/>
<a id="pl.60.23"></a><var>60.23</var>issuance of obligations must also be included in the question.<br/>
<a id="pl.60.24"></a><var>60.24</var>    (f) The district must notify the commissioner of the results of the referendum.<br/>
<a id="pl.60.25"></a><var>60.25</var>    (g) Notwithstanding paragraph (a), a referendum to levy the amount needed to finance
         <br/>
<a id="pl.60.26"></a><var>60.26</var>a district's response to a disaster or emergency may be held on a date set by the
         board. <br/>
<a id="pl.60.27"></a><var>60.27</var>"Disaster" means a situation that creates an actual or imminent serious threat to
         the health <br/>
<a id="pl.60.28"></a><var>60.28</var>and safety of persons, or a situation that has resulted or is likely to result in
         catastrophic <br/>
<a id="pl.60.29"></a><var>60.29</var>loss to property or the environment. "Emergency" means an unforeseen combination of
         <br/>
<a id="pl.60.30"></a><var>60.30</var>circumstances that calls for immediate action to prevent a disaster, identified in
         the <br/>
<a id="pl.60.31"></a><var>60.31</var>referendum, from developing or occurring.<br/>
<a id="pl.60.32"></a><var>60.32</var><b>EFFECTIVE DATE.</b>This section is effective August 1, 2017, and applies to any <br/>
<a id="pl.60.33"></a><var>60.33</var>referendum authorized on or after that date.<br/>
<br/>
<a id="bill.2.2.0"></a><a id="pl.61.1"></a><var>61.1</var>    Sec. 2. Minnesota Statutes 2016, section 126C.17, subdivision 9, is amended to read:<br/>
<a id="pl.61.2"></a><var>61.2</var>    Subd. 9. <b>Referendum revenue.</b> (a) The revenue authorized by section 
         <statute_ref>126C.10, <br/>
<a id="pl.61.3"></a><var>61.3</var>subdivision 1
         </statute_ref>, may be increased in the amount approved by the voters of the district at a <br/>
<a id="pl.61.4"></a><var>61.4</var>referendum called for the purpose. The referendum may be called by the board. The
         <br/>
<a id="pl.61.5"></a><var>61.5</var>referendum must be conducted one or two calendar years before the increased levy authority,
         <br/>
<a id="pl.61.6"></a><var>61.6</var>if approved, first becomes payable. Only one election to approve an increase may be
         held <br/>
<a id="pl.61.7"></a><var>61.7</var>in a calendar year. Unless the referendum is conducted by mail under subdivision 11,
         <br/>
<a id="pl.61.8"></a><var>61.8</var>paragraph (a), the referendum must be held on the first Tuesday after the first Monday
         in <br/>
<a id="pl.61.9"></a><var>61.9</var>November. The ballot must state the maximum amount of the increased revenue per adjusted
         <br/>
<a id="pl.61.10"></a><var>61.10</var>pupil unit. The ballot may state a schedule, determined by the board, of increased
         revenue <br/>
<a id="pl.61.11"></a><var>61.11</var>per adjusted pupil unit that differs from year to year over the number of years for
         which the <br/>
<a id="pl.61.12"></a><var>61.12</var>increased revenue is authorized or may state that the amount shall increase annually
         by the <br/>
<a id="pl.61.13"></a><var>61.13</var>rate of inflation. The ballot must state the cumulative amount per pupil of any local optional <br/>
<a id="pl.61.14"></a><var>61.14</var>revenue, board-approved referendum authority, and previous voter-approved referendum
         <br/>
<a id="pl.61.15"></a><var>61.15</var>authority, if any, that the board expects to certify for the next school year. For this purpose, <br/>
<a id="pl.61.16"></a><var>61.16</var>the rate of inflation shall be the annual inflationary increase calculated under subdivision
         <br/>
<a id="pl.61.17"></a><var>61.17</var>2, paragraph (b). The ballot may state that existing referendum levy authority is
         expiring. <br/>
<a id="pl.61.18"></a><var>61.18</var>In this case, the ballot may also compare the proposed levy authority to the existing
         expiring <br/>
<a id="pl.61.19"></a><var>61.19</var>levy authority, and express the proposed increase as the amount, if any, over the
         expiring <br/>
<a id="pl.61.20"></a><var>61.20</var>referendum levy authority. The ballot must designate the specific number of years,
         not to <br/>
<a id="pl.61.21"></a><var>61.21</var>exceed ten, for which the referendum authorization applies. The ballot, including
         a ballot <br/>
<a id="pl.61.22"></a><var>61.22</var>on the question to revoke or reduce the increased revenue amount under paragraph (c),
         must <br/>
<a id="pl.61.23"></a><var>61.23</var>abbreviate the term "per adjusted pupil unit" as "per pupil." The notice required
         under section <br/>
<statute_ref><a id="pl.61.24"></a><var>61.24</var>275.60
         </statute_ref> may be modified to read, in cases of renewing existing levies at the same amount
         <br/>
<a id="pl.61.25"></a><var>61.25</var>per pupil as in the previous year:<br/>
<a id="pl.61.26"></a><var>61.26</var>"BY VOTING "YES" ON THIS BALLOT QUESTION, YOU ARE VOTING TO <br/>
<a id="pl.61.27"></a><var>61.27</var>EXTEND AN EXISTING PROPERTY TAX REFERENDUM THAT IS SCHEDULED <br/>
<a id="pl.61.28"></a><var>61.28</var>TO EXPIRE."<br/>
<a id="pl.61.29"></a><var>61.29</var>    The ballot may contain a textual portion with the information required in this subdivision
         <br/>
<a id="pl.61.30"></a><var>61.30</var>and a question stating substantially the following:<br/>
<a id="pl.61.31"></a><var>61.31</var>    "Shall the increase in the revenue proposed by (petition to) the board of .........,
         School <br/>
<a id="pl.61.32"></a><var>61.32</var>District No. .., be approved?"<br/>
<a id="pl.61.33"></a><var>61.33</var>    If approved, an amount equal to the approved revenue per adjusted pupil unit times
         the <br/>
<a id="pl.61.34"></a><var>61.34</var>adjusted pupil units for the school year beginning in the year after the levy is certified
         shall <br/>
<a id="pl.62.1"></a><var>62.1</var>be authorized for certification for the number of years approved, if applicable, or
         until <br/>
<a id="pl.62.2"></a><var>62.2</var>revoked or reduced by the voters of the district at a subsequent referendum.<br/>
<a id="pl.62.3"></a><var>62.3</var>    (b) The board must prepare and deliver by first class mail at least 15 days but no
         more <br/>
<a id="pl.62.4"></a><var>62.4</var>than 30 days before the day of the referendum to each taxpayer a notice of the referendum
         <br/>
<a id="pl.62.5"></a><var>62.5</var>and the proposed revenue increase. The board need not mail more than one notice to
         any <br/>
<a id="pl.62.6"></a><var>62.6</var>taxpayer. For the purpose of giving mailed notice under this subdivision, owners must
         be <br/>
<a id="pl.62.7"></a><var>62.7</var>those shown to be owners on the records of the county auditor or, in any county where
         tax <br/>
<a id="pl.62.8"></a><var>62.8</var>statements are mailed by the county treasurer, on the records of the county treasurer.
         Every <br/>
<a id="pl.62.9"></a><var>62.9</var>property owner whose name does not appear on the records of the county auditor or
         the <br/>
<a id="pl.62.10"></a><var>62.10</var>county treasurer is deemed to have waived this mailed notice unless the owner has
         requested <br/>
<a id="pl.62.11"></a><var>62.11</var>in writing that the county auditor or county treasurer, as the case may be, include
         the name <br/>
<a id="pl.62.12"></a><var>62.12</var>on the records for this purpose. The notice must project the anticipated amount of
         tax increase <br/>
<a id="pl.62.13"></a><var>62.13</var>in annual dollars for typical residential homesteads, agricultural homesteads, apartments,
         <br/>
<a id="pl.62.14"></a><var>62.14</var>and commercial-industrial property within the school district.<br/>
<a id="pl.62.15"></a><var>62.15</var>The notice must state the cumulative and individual amounts per pupil of any local
         <br/>
<a id="pl.62.16"></a><var>62.16</var>optional revenue, board-approved referendum authority, and voter-approved referendum
         <br/>
<a id="pl.62.17"></a><var>62.17</var>authority, if any, that the board expects to certify for the next school year.<br/>
<a id="pl.62.18"></a><var>62.18</var>    The notice for a referendum may state that an existing referendum levy is expiring
         and <br/>
<a id="pl.62.19"></a><var>62.19</var>project the anticipated amount of increase over the existing referendum levy in the
         first <br/>
<a id="pl.62.20"></a><var>62.20</var>year, if any, in annual dollars for typical residential homesteads, agricultural homesteads,
         <br/>
<a id="pl.62.21"></a><var>62.21</var>apartments, and commercial-industrial property within the district.<br/>
<a id="pl.62.22"></a><var>62.22</var>    The notice must include the following statement: "Passage of this referendum will
         result <br/>
<a id="pl.62.23"></a><var>62.23</var>in an increase in your property taxes." However, in cases of renewing existing levies,
         the <br/>
<a id="pl.62.24"></a><var>62.24</var>notice may include the following statement: "Passage of this referendum extends an
         existing <br/>
<a id="pl.62.25"></a><var>62.25</var>operating referendum at the same amount per pupil as in the previous year."<br/>
<a id="pl.62.26"></a><var>62.26</var>    (c) A referendum on the question of revoking or reducing the increased revenue amount
         <br/>
<a id="pl.62.27"></a><var>62.27</var>authorized pursuant to paragraph (a) may be called by the board. A referendum to revoke
         <br/>
<a id="pl.62.28"></a><var>62.28</var>or reduce the revenue amount must state the amount per adjusted pupil unit by which
         the <br/>
<a id="pl.62.29"></a><var>62.29</var>authority is to be reduced. Revenue authority approved by the voters of the district
         pursuant <br/>
<a id="pl.62.30"></a><var>62.30</var>to paragraph (a) must be available to the school district at least once before it
         is subject to <br/>
<a id="pl.62.31"></a><var>62.31</var>a referendum on its revocation or reduction for subsequent years. Only one revocation
         or <br/>
<a id="pl.62.32"></a><var>62.32</var>reduction referendum may be held to revoke or reduce referendum revenue for any specific
         <br/>
<a id="pl.62.33"></a><var>62.33</var>year and for years thereafter.<br/>
<a id="pl.63.1"></a><var>63.1</var>    (d) The approval of 50 percent plus one of those voting on the question is required
         to <br/>
<a id="pl.63.2"></a><var>63.2</var>pass a referendum authorized by this subdivision.<br/>
<a id="pl.63.3"></a><var>63.3</var>    (e) At least 15 days before the day of the referendum, the district must submit a
         copy of <br/>
<a id="pl.63.4"></a><var>63.4</var>the notice required under paragraph (b) to the commissioner and to the county auditor
         of <br/>
<a id="pl.63.5"></a><var>63.5</var>each county in which the district is located. Within 15 days after the results of
         the referendum <br/>
<a id="pl.63.6"></a><var>63.6</var>have been certified by the board, or in the case of a recount, the certification of
         the results <br/>
<a id="pl.63.7"></a><var>63.7</var>of the recount by the canvassing board, the district must notify the commissioner
         of the <br/>
<a id="pl.63.8"></a><var>63.8</var>results of the referendum.<br/>
<a id="pl.63.9"></a><var>63.9</var><b>EFFECTIVE DATE.</b>This section is effective August 1, 2017, and applies to any <br/>
<a id="pl.63.10"></a><var>63.10</var>referendum authorized on or after that date.<br/>
<br/>
<a id="bill.2.3.0"></a><a id="pl.63.11"></a><var>63.11</var>    Sec. 3. Minnesota Statutes 2016, section 205.10, subdivision 1, is amended to read:<br/>
<a id="pl.63.12"></a><var>63.12</var>    Subdivision 1. <b>Questions.</b> Special elections may be held in a city or town on a question <br/>
<a id="pl.63.13"></a><var>63.13</var>on which the voters are authorized by law or charter to pass judgment. A special election <br/>
<a id="pl.63.14"></a><var>63.14</var>on a question may only be held by a city on the first Tuesday after the first Monday
         in <br/>
<a id="pl.63.15"></a><var>63.15</var>November in either an even-numbered or odd-numbered year. A special election on a
         <br/>
<a id="pl.63.16"></a><var>63.16</var>question held by a town may be held on the same day as the annual town meeting or
         on the <br/>
<a id="pl.63.17"></a><var>63.17</var>first Tuesday after the first Monday in November in either an even-numbered or <br/>
<a id="pl.63.18"></a><var>63.18</var>odd-numbered year. A special election may be ordered by the governing body of the <br/>
<a id="pl.63.19"></a><var>63.19</var>municipality on its own motion or, on a question that has not been submitted to the
         voters <br/>
<a id="pl.63.20"></a><var>63.20</var>in an election within the previous six months, upon a petition signed by a number
         of voters <br/>
<a id="pl.63.21"></a><var>63.21</var>equal to 20 percent of the votes cast at the last municipal general election. A question
         is <br/>
<a id="pl.63.22"></a><var>63.22</var>carried only with the majority in its favor required by law or charter. The election
         officials <br/>
<a id="pl.63.23"></a><var>63.23</var>for a special election shall be the same as for the most recent municipal general
         election <br/>
<a id="pl.63.24"></a><var>63.24</var>unless changed according to law. Otherwise special elections shall be conducted and
         the <br/>
<a id="pl.63.25"></a><var>63.25</var>returns made in the manner provided for the municipal general election.<br/>
<a id="pl.63.26"></a><var>63.26</var><b>EFFECTIVE DATE.</b>This section is effective August 1, 2017, and applies to any <br/>
<a id="pl.63.27"></a><var>63.27</var>referendum authorized on or after that date.<br/>
<br/>
<a id="bill.2.4.0"></a><a id="pl.63.28"></a><var>63.28</var>    Sec. 4. Minnesota Statutes 2016, section 205A.05, subdivision 1, is amended to read:<br/>
<a id="pl.63.29"></a><var>63.29</var>    Subdivision 1. <b>Questions.</b> (a) Special elections must be held for a school district on a <br/>
<a id="pl.63.30"></a><var>63.30</var>question on which the voters are authorized by law to pass judgment. The special election <br/>
<a id="pl.63.31"></a><var>63.31</var>on a question may only be held on the first Tuesday after the first Monday in November
         of <br/>
<a id="pl.63.32"></a><var>63.32</var>either an even-numbered or odd-numbered year. The school board may on its own motion <br/>
<a id="pl.63.33"></a><var>63.33</var>call a special election to vote on any matter requiring approval of the voters of
         a district. <br/>
<a id="pl.64.1"></a><var>64.1</var>Upon petition filed with the school board of 50 or more voters of the school district
         or five <br/>
<a id="pl.64.2"></a><var>64.2</var>percent of the number of voters voting at the preceding school district general election,
         <br/>
<a id="pl.64.3"></a><var>64.3</var>whichever is greater, the school board shall by resolution call a special election
         to vote on <br/>
<a id="pl.64.4"></a><var>64.4</var>any matter requiring approval of the voters of a district. A question is carried only
         with the <br/>
<a id="pl.64.5"></a><var>64.5</var>majority in its favor required by law. The election officials for a special election
         are the <br/>
<a id="pl.64.6"></a><var>64.6</var>same as for the most recent school district general election unless changed according
         to <br/>
<a id="pl.64.7"></a><var>64.7</var>law. Otherwise, special elections must be conducted and the returns made in the manner
         <br/>
<a id="pl.64.8"></a><var>64.8</var>provided for the school district general election.<br/>
<a id="pl.64.9"></a><var>64.9</var>    (b) A special election may not be held:<br/>
<a id="pl.64.10"></a><var>64.10</var>    (1) during the 56 days before and the 56 days after a regularly scheduled primary
         or <br/>
<a id="pl.64.11"></a><var>64.11</var>general election conducted wholly or partially within the school district;<br/>
<a id="pl.64.12"></a><var>64.12</var>    (2) on the date of a regularly scheduled town election or annual meeting in March
         <br/>
<a id="pl.64.13"></a><var>64.13</var>conducted wholly or partially within the school district; or<br/>
<a id="pl.64.14"></a><var>64.14</var>    (3) during the 30 days before or the 30 days after a regularly scheduled town election
         <br/>
<a id="pl.64.15"></a><var>64.15</var>in March conducted wholly or partially within the school district.<br/>
<a id="pl.64.16"></a><var>64.16</var>    (c) Notwithstanding any other law to the contrary, the time period in which a special
         <br/>
<a id="pl.64.17"></a><var>64.17</var>election must be conducted under any other law may be extended by the school board
         to <br/>
<a id="pl.64.18"></a><var>64.18</var>conform with the requirements of this subdivision.<br/>
<a id="pl.64.19"></a><var>64.19</var><b>EFFECTIVE DATE.</b>This section is effective August 1, 2017, and applies to any <br/>
<a id="pl.64.20"></a><var>64.20</var>referendum authorized on or after that date.<br/>
<br/>
<a id="bill.2.5.0"></a><a id="pl.64.21"></a><var>64.21</var>    Sec. 5. Minnesota Statutes 2016, section 216B.46, is amended to read:<br/>
<a id="pl.64.22"></a><var>64.22</var><b>216B.46 MUNICIPAL ACQUISITION PROCEDURES; NOTICE; ELECTION.</b><br/>
<a id="pl.64.23"></a><var>64.23</var>Any municipality which desires to acquire the property of a public utility as authorized
         <br/>
<a id="pl.64.24"></a><var>64.24</var>under the provisions of section 
         <statute_ref>216B.45</statute_ref> may determine to do so by resolution of the <br/>
<a id="pl.64.25"></a><var>64.25</var>governing body of the municipality taken after a public hearing of which at least
         30 days' <br/>
<a id="pl.64.26"></a><var>64.26</var>published notice shall be given as determined by the governing body. The determination
         <br/>
<a id="pl.64.27"></a><var>64.27</var>shall become effective when ratified by a majority of the qualified electors voting
         on the <br/>
<a id="pl.64.28"></a><var>64.28</var>question at a special election to be held for that purpose, not less than 60 nor more than 120 <br/>
<a id="pl.64.29"></a><var>64.29</var>days after the resolution of the governing body of the municipality on the first Tuesday after <br/>
<a id="pl.64.30"></a><var>64.30</var>the first Monday in November in either an even-numbered or odd-numbered year.<br/>
<a id="pl.64.31"></a><var>64.31</var><b>EFFECTIVE DATE.</b>This section is effective August 1, 2017, and applies to any <br/>
<a id="pl.64.32"></a><var>64.32</var>referendum authorized on or after that date.<br/>
<br/>
<a id="bill.2.6.0"></a><a id="pl.65.1"></a><var>65.1</var>    Sec. 6. Minnesota Statutes 2016, section 237.19, is amended to read:<br/>
<a id="pl.65.2"></a><var>65.2</var><b>237.19 MUNICIPAL TELECOMMUNICATIONS SERVICES.</b><br/>
<a id="pl.65.3"></a><var>65.3</var>Any municipality shall have the right to own and operate a telephone exchange within
         <br/>
<a id="pl.65.4"></a><var>65.4</var>its own borders, subject to the provisions of this chapter. It may construct such
         plant, or <br/>
<a id="pl.65.5"></a><var>65.5</var>purchase an existing plant by agreement with the owner, or where it cannot agree with
         the <br/>
<a id="pl.65.6"></a><var>65.6</var>owner on price, it may acquire an existing plant by condemnation, as hereinafter provided,
         <br/>
<a id="pl.65.7"></a><var>65.7</var>but in no case shall a municipality construct or purchase such a plant or proceed
         to acquire <br/>
<a id="pl.65.8"></a><var>65.8</var>an existing plant by condemnation until such action by it is authorized by a majority
         of the <br/>
<a id="pl.65.9"></a><var>65.9</var>electors voting upon the proposition at a general an election or a special election called for <br/>
<a id="pl.65.10"></a><var>65.10</var>that purpose held on the first Tuesday after the first Monday in November in either an <br/>
<a id="pl.65.11"></a><var>65.11</var>even-numbered or odd-numbered year, and if the proposal is to construct a new exchange <br/>
<a id="pl.65.12"></a><var>65.12</var>where an exchange already exists, it shall not be authorized to do so unless 65 percent
         of <br/>
<a id="pl.65.13"></a><var>65.13</var>those voting thereon vote in favor of the undertaking. A municipality that owns and
         operates <br/>
<a id="pl.65.14"></a><var>65.14</var>a telephone exchange may enter into a joint venture as a partner or shareholder with
         a <br/>
<a id="pl.65.15"></a><var>65.15</var>telecommunications organization to provide telecommunications services within its
         service <br/>
<a id="pl.65.16"></a><var>65.16</var>area.<br/>
<a id="pl.65.17"></a><var>65.17</var><b>EFFECTIVE DATE.</b>This section is effective August 1, 2017, and applies to any <br/>
<a id="pl.65.18"></a><var>65.18</var>referendum authorized on or after that date.<br/>
<br/>
<a id="bill.2.7.0"></a><a id="pl.65.19"></a><var>65.19</var>    Sec. 7. Minnesota Statutes 2016, section 275.065, subdivision 3, is amended to read:<br/>
<a id="pl.65.20"></a><var>65.20</var>    Subd. 3. <b>Notice of proposed property taxes.</b> (a) The county auditor shall prepare and <br/>
<a id="pl.65.21"></a><var>65.21</var>the county treasurer shall deliver after November 10 and on or before November 24
         each <br/>
<a id="pl.65.22"></a><var>65.22</var>year, by first class mail to each taxpayer at the address listed on the county's current
         year's <br/>
<a id="pl.65.23"></a><var>65.23</var>assessment roll, a notice of proposed property taxes. Upon written request by the
         taxpayer, <br/>
<a id="pl.65.24"></a><var>65.24</var>the treasurer may send the notice in electronic form or by electronic mail instead
         of on paper <br/>
<a id="pl.65.25"></a><var>65.25</var>or by ordinary mail.<br/>
<a id="pl.65.26"></a><var>65.26</var>    (b) The commissioner of revenue shall prescribe the form of the notice.<br/>
<a id="pl.65.27"></a><var>65.27</var>    (c) The notice must inform taxpayers that it contains the amount of property taxes
         each <br/>
<a id="pl.65.28"></a><var>65.28</var>taxing authority proposes to collect for taxes payable the following year. In the
         case of a <br/>
<a id="pl.65.29"></a><var>65.29</var>town, or in the case of the state general tax, the final tax amount will be its proposed
         tax. <br/>
<a id="pl.65.30"></a><var>65.30</var>The notice must clearly state for each city that has a population over 500, county,
         school <br/>
<a id="pl.65.31"></a><var>65.31</var>district, regional library authority established under section 
         <statute_ref>134.201</statute_ref>, and metropolitan taxing <br/>
<a id="pl.65.32"></a><var>65.32</var>districts as defined in paragraph (i), the time and place of a meeting for each taxing
         authority <br/>
<a id="pl.65.33"></a><var>65.33</var>in which the budget and levy will be discussed and public input allowed, prior to
         the final <br/>
<a id="pl.66.1"></a><var>66.1</var>budget and levy determination. The taxing authorities must provide the county auditor
         with <br/>
<a id="pl.66.2"></a><var>66.2</var>the information to be included in the notice on or before the time it certifies its
         proposed <br/>
<a id="pl.66.3"></a><var>66.3</var>levy under subdivision 1. The public must be allowed to speak at that meeting, which
         must <br/>
<a id="pl.66.4"></a><var>66.4</var>occur after November 24 and must not be held before 6:00 p.m. It must provide a telephone
         <br/>
<a id="pl.66.5"></a><var>66.5</var>number for the taxing authority that taxpayers may call if they have questions related
         to the <br/>
<a id="pl.66.6"></a><var>66.6</var>notice and an address where comments will be received by mail, except that no notice
         <br/>
<a id="pl.66.7"></a><var>66.7</var>required under this section shall be interpreted as requiring the printing of a personal
         <br/>
<a id="pl.66.8"></a><var>66.8</var>telephone number or address as the contact information for a taxing authority. If
         a taxing <br/>
<a id="pl.66.9"></a><var>66.9</var>authority does not maintain public offices where telephone calls can be received by
         the <br/>
<a id="pl.66.10"></a><var>66.10</var>authority, the authority may inform the county of the lack of a public telephone number
         and <br/>
<a id="pl.66.11"></a><var>66.11</var>the county shall not list a telephone number for that taxing authority.<br/>
<a id="pl.66.12"></a><var>66.12</var>    (d) The notice must state for each parcel:<br/>
<a id="pl.66.13"></a><var>66.13</var>    (1) the market value of the property as determined under section 
         <statute_ref>273.11</statute_ref>, and used for <br/>
<a id="pl.66.14"></a><var>66.14</var>computing property taxes payable in the following year and for taxes payable in the
         current <br/>
<a id="pl.66.15"></a><var>66.15</var>year as each appears in the records of the county assessor on November 1 of the current
         <br/>
<a id="pl.66.16"></a><var>66.16</var>year; and, in the case of residential property, whether the property is classified
         as homestead <br/>
<a id="pl.66.17"></a><var>66.17</var>or nonhomestead. The notice must clearly inform taxpayers of the years to which the
         market <br/>
<a id="pl.66.18"></a><var>66.18</var>values apply and that the values are final values;<br/>
<a id="pl.66.19"></a><var>66.19</var>    (2) the items listed below, shown separately by county, city or town, and state general
         <br/>
<a id="pl.66.20"></a><var>66.20</var>tax, agricultural homestead credit under section 
         <statute_ref>273.1384</statute_ref>, voter approved school levy, other <br/>
<a id="pl.66.21"></a><var>66.21</var>local school levy, and the sum of the special taxing districts, and as a total of
         all taxing <br/>
<a id="pl.66.22"></a><var>66.22</var>authorities:<br/>
<a id="pl.66.23"></a><var>66.23</var>    (i) the actual tax for taxes payable in the current year; and<br/>
<a id="pl.66.24"></a><var>66.24</var>    (ii) the proposed tax amount.<br/>
<a id="pl.66.25"></a><var>66.25</var>    If the county levy under clause (2) includes an amount for a lake improvement district
         <br/>
<a id="pl.66.26"></a><var>66.26</var>as defined under sections 
         <statute_ref>103B.501</statute_ref> to 
         <statute_ref>103B.581</statute_ref>, the amount attributable for that purpose <br/>
<a id="pl.66.27"></a><var>66.27</var>must be separately stated from the remaining county levy amount.<br/>
<a id="pl.66.28"></a><var>66.28</var>    In the case of a town or the state general tax, the final tax shall also be its proposed
         tax <br/>
<a id="pl.66.29"></a><var>66.29</var>unless the town changes its levy at a special town meeting under section 
         <statute_ref>365.52</statute_ref>. If a school <br/>
<a id="pl.66.30"></a><var>66.30</var>district has certified under section 
         <statute_ref>126C.17, subdivision 9</statute_ref>, that a referendum will be held <br/>
<a id="pl.66.31"></a><var>66.31</var>in the school district at the November general election, the county auditor must note
         next <br/>
<a id="pl.66.32"></a><var>66.32</var>to the school district's proposed amount that a referendum is pending and that, if
         approved <br/>
<a id="pl.66.33"></a><var>66.33</var>by the voters, the tax amount may be higher than shown on the notice. In the case
         of the <br/>
<a id="pl.66.34"></a><var>66.34</var>city of Minneapolis, the levy for Minneapolis Park and Recreation shall be listed
         separately <br/>
<a id="pl.67.1"></a><var>67.1</var>from the remaining amount of the city's levy. In the case of the city of St. Paul,
         the levy for <br/>
<a id="pl.67.2"></a><var>67.2</var>the St. Paul Library Agency must be listed separately from the remaining amount of
         the <br/>
<a id="pl.67.3"></a><var>67.3</var>city's levy. In the case of Ramsey County, any amount levied under section 
         <statute_ref>134.07</statute_ref> may be <br/>
<a id="pl.67.4"></a><var>67.4</var>listed separately from the remaining amount of the county's levy. In the case of a
         parcel <br/>
<a id="pl.67.5"></a><var>67.5</var>where tax increment or the fiscal disparities areawide tax under chapter 276A or 473F
         <br/>
<a id="pl.67.6"></a><var>67.6</var>applies, the proposed tax levy on the captured value or the proposed tax levy on the
         tax <br/>
<a id="pl.67.7"></a><var>67.7</var>capacity subject to the areawide tax must each be stated separately and not included
         in the <br/>
<a id="pl.67.8"></a><var>67.8</var>sum of the special taxing districts; and<br/>
<a id="pl.67.9"></a><var>67.9</var>    (3) the increase or decrease between the total taxes payable in the current year and
         the <br/>
<a id="pl.67.10"></a><var>67.10</var>total proposed taxes, expressed as a percentage.; and<br/>
<a id="pl.67.11"></a><var>67.11</var>    (4) a statement at the top of the notice stating the following: if a county's or city's
         <br/>
<a id="pl.67.12"></a><var>67.12</var>proposed levy for next year is greater than its actual levy for the current year,
         the voters <br/>
<a id="pl.67.13"></a><var>67.13</var>may have the right to petition for a referendum on next year's levy certification,
         according <br/>
<a id="pl.67.14"></a><var>67.14</var>to Minnesota Statutes, section 275.80, provided that the final levy that the local
         government <br/>
<a id="pl.67.15"></a><var>67.15</var>certifies in December of this year is also greater than its levy for the current year.<br/>
<a id="pl.67.16"></a><var>67.16</var>    For purposes of this section, the amount of the tax on homesteads qualifying under
         the <br/>
<a id="pl.67.17"></a><var>67.17</var>senior citizens' property tax deferral program under chapter 290B is the total amount
         of <br/>
<a id="pl.67.18"></a><var>67.18</var>property tax before subtraction of the deferred property tax amount.<br/>
<a id="pl.67.19"></a><var>67.19</var>    (e) The notice must clearly state that the proposed or final taxes do not include
         the <br/>
<a id="pl.67.20"></a><var>67.20</var>following:<br/>
<a id="pl.67.21"></a><var>67.21</var>    (1) special assessments;<br/>
<a id="pl.67.22"></a><var>67.22</var>    (2) levies approved by the voters after the date the proposed taxes are certified,
         including <br/>
<a id="pl.67.23"></a><var>67.23</var>bond referenda and school district levy referenda;<br/>
<a id="pl.67.24"></a><var>67.24</var>    (3) a levy limit increase approved by the voters by the first Tuesday after the first
         Monday <br/>
<a id="pl.67.25"></a><var>67.25</var>in November of the levy year as provided under section 
         <statute_ref>275.73</statute_ref>;<br/>
<a id="pl.67.26"></a><var>67.26</var>    (4) amounts necessary to pay cleanup or other costs due to a natural disaster occurring
         <br/>
<a id="pl.67.27"></a><var>67.27</var>after the date the proposed taxes are certified;<br/>
<a id="pl.67.28"></a><var>67.28</var>    (5) amounts necessary to pay tort judgments against the taxing authority that become
         <br/>
<a id="pl.67.29"></a><var>67.29</var>final after the date the proposed taxes are certified; and<br/>
<a id="pl.67.30"></a><var>67.30</var>    (6) the contamination tax imposed on properties which received market value reductions
         <br/>
<a id="pl.67.31"></a><var>67.31</var>for contamination.<br/>
<a id="pl.68.1"></a><var>68.1</var>    (f) Except as provided in subdivision 7, failure of the county auditor to prepare
         or the <br/>
<a id="pl.68.2"></a><var>68.2</var>county treasurer to deliver the notice as required in this section does not invalidate
         the <br/>
<a id="pl.68.3"></a><var>68.3</var>proposed or final tax levy or the taxes payable pursuant to the tax levy.<br/>
<a id="pl.68.4"></a><var>68.4</var>    (g) If the notice the taxpayer receives under this section lists the property as <br/>
<a id="pl.68.5"></a><var>68.5</var>nonhomestead, and satisfactory documentation is provided to the county assessor by
         the <br/>
<a id="pl.68.6"></a><var>68.6</var>applicable deadline, and the property qualifies for the homestead classification in
         that <br/>
<a id="pl.68.7"></a><var>68.7</var>assessment year, the assessor shall reclassify the property to homestead for taxes
         payable <br/>
<a id="pl.68.8"></a><var>68.8</var>in the following year.<br/>
<a id="pl.68.9"></a><var>68.9</var>    (h) In the case of class 4 residential property used as a residence for lease or rental
         <br/>
<a id="pl.68.10"></a><var>68.10</var>periods of 30 days or more, the taxpayer must either:<br/>
<a id="pl.68.11"></a><var>68.11</var>    (1) mail or deliver a copy of the notice of proposed property taxes to each tenant,
         renter, <br/>
<a id="pl.68.12"></a><var>68.12</var>or lessee; or<br/>
<a id="pl.68.13"></a><var>68.13</var>    (2) post a copy of the notice in a conspicuous place on the premises of the property.<br/>
<a id="pl.68.14"></a><var>68.14</var>    The notice must be mailed or posted by the taxpayer by November 27 or within three
         <br/>
<a id="pl.68.15"></a><var>68.15</var>days of receipt of the notice, whichever is later. A taxpayer may notify the county
         treasurer <br/>
<a id="pl.68.16"></a><var>68.16</var>of the address of the taxpayer, agent, caretaker, or manager of the premises to which
         the <br/>
<a id="pl.68.17"></a><var>68.17</var>notice must be mailed in order to fulfill the requirements of this paragraph.<br/>
<a id="pl.68.18"></a><var>68.18</var>    (i) For purposes of this subdivision and subdivision 6, "metropolitan special taxing
         <br/>
<a id="pl.68.19"></a><var>68.19</var>districts" means the following taxing districts in the seven-county metropolitan area
         that <br/>
<a id="pl.68.20"></a><var>68.20</var>levy a property tax for any of the specified purposes listed below:<br/>
<a id="pl.68.21"></a><var>68.21</var>    (1) Metropolitan Council under section 
         <statute_ref>473.132</statute_ref>, 
         <statute_ref>473.167</statute_ref>, 
         <statute_ref>473.249</statute_ref>, 
         <statute_ref>473.325</statute_ref>, 
         <statute_ref>473.446</statute_ref>, <br/>
<statute_ref><a id="pl.68.22"></a><var>68.22</var>473.521
         </statute_ref>, 
         <statute_ref>473.547</statute_ref>, or 
         <statute_ref>473.834</statute_ref>;<br/>
<a id="pl.68.23"></a><var>68.23</var>    (2) Metropolitan Airports Commission under section 
         <statute_ref>473.667</statute_ref>, 
         <statute_ref>473.671</statute_ref>, or 
         <statute_ref>473.672</statute_ref>; and<br/>
<a id="pl.68.24"></a><var>68.24</var>    (3) Metropolitan Mosquito Control Commission under section 
         <statute_ref>473.711</statute_ref>.<br/>
<a id="pl.68.25"></a><var>68.25</var>    For purposes of this section, any levies made by the regional rail authorities in
         the county <br/>
<a id="pl.68.26"></a><var>68.26</var>of Anoka, Carver, Dakota, Hennepin, Ramsey, Scott, or Washington under chapter 398A
         <br/>
<a id="pl.68.27"></a><var>68.27</var>shall be included with the appropriate county's levy.<br/>
<a id="pl.68.28"></a><var>68.28</var>    (j) The governing body of a county, city, or school district may, with the consent
         of the <br/>
<a id="pl.68.29"></a><var>68.29</var>county board, include supplemental information with the statement of proposed property
         <br/>
<a id="pl.68.30"></a><var>68.30</var>taxes about the impact of state aid increases or decreases on property tax increases
         or <br/>
<a id="pl.68.31"></a><var>68.31</var>decreases and on the level of services provided in the affected jurisdiction. This
         supplemental <br/>
<a id="pl.68.32"></a><var>68.32</var>information may include information for the following year, the current year, and
         for as <br/>
<a id="pl.69.1"></a><var>69.1</var>many consecutive preceding years as deemed appropriate by the governing body of the
         <br/>
<a id="pl.69.2"></a><var>69.2</var>county, city, or school district. It may include only information regarding:<br/>
<a id="pl.69.3"></a><var>69.3</var>    (1) the impact of inflation as measured by the implicit price deflator for state and
         local <br/>
<a id="pl.69.4"></a><var>69.4</var>government purchases;<br/>
<a id="pl.69.5"></a><var>69.5</var>    (2) population growth and decline;<br/>
<a id="pl.69.6"></a><var>69.6</var>    (3) state or federal government action; and<br/>
<a id="pl.69.7"></a><var>69.7</var>    (4) other financial factors that affect the level of property taxation and local services
         <br/>
<a id="pl.69.8"></a><var>69.8</var>that the governing body of the county, city, or school district may deem appropriate
         to <br/>
<a id="pl.69.9"></a><var>69.9</var>include.<br/>
<a id="pl.69.10"></a><var>69.10</var>    The information may be presented using tables, written narrative, and graphic <br/>
<a id="pl.69.11"></a><var>69.11</var>representations and may contain instruction toward further sources of information
         or <br/>
<a id="pl.69.12"></a><var>69.12</var>opportunity for comment.<br/>
<a id="pl.69.13"></a><var>69.13</var><b>EFFECTIVE DATE.</b>This section is effective for taxes payable in 2018 and thereafter.<br/>
<br/>
<a id="bill.2.8.0"></a><a id="pl.69.14"></a><var>69.14</var>    Sec. 8. Minnesota Statutes 2016, section 275.07, subdivision 1, is amended to read:<br/>
<a id="pl.69.15"></a><var>69.15</var>    Subdivision 1. <b>Certification of levy.</b> (a) Except as provided under paragraph (b), the <br/>
<a id="pl.69.16"></a><var>69.16</var>taxes voted by cities, counties, school districts, and special districts shall be
         certified by the <br/>
<a id="pl.69.17"></a><var>69.17</var>proper authorities to the county auditor on or before five working days after December
         20 <br/>
<a id="pl.69.18"></a><var>69.18</var>in each year. A town must certify the levy adopted by the town board to the county
         auditor <br/>
<a id="pl.69.19"></a><var>69.19</var>by September 15 each year. If the town board modifies the levy at a special town meeting
         <br/>
<a id="pl.69.20"></a><var>69.20</var>after September 15, the town board must recertify its levy to the county auditor on
         or before <br/>
<a id="pl.69.21"></a><var>69.21</var>five working days after December 20. If a city or county levy is subject to a referendum <br/>
<a id="pl.69.22"></a><var>69.22</var>under section 275.80 and the referendum was approved by the voters, the maximum levy
         <br/>
<a id="pl.69.23"></a><var>69.23</var>certified under this section is the proposed levy certified under section 275.065.
         If the <br/>
<a id="pl.69.24"></a><var>69.24</var>referendum was not approved, the maximum amount of levy that a city or county may
         <br/>
<a id="pl.69.25"></a><var>69.25</var>approve under this section is the maximum alternative levy allowed in section 275.80,
         <br/>
<a id="pl.69.26"></a><var>69.26</var>subdivision 2. The city or county may choose to certify a levy less than the allowed
         maximum <br/>
<a id="pl.69.27"></a><var>69.27</var>amount. If a city, town, county, school district, or special district fails to certify its
         levy by <br/>
<a id="pl.69.28"></a><var>69.28</var>that date, its levy shall be the amount levied by it for the preceding year.<br/>
<a id="pl.69.29"></a><var>69.29</var>(b)(i) The taxes voted by counties under sections 
         <statute_ref>103B.241</statute_ref>, 
         <statute_ref>103B.245</statute_ref>, and 
         <statute_ref>103B.251</statute_ref> <br/>
<a id="pl.69.30"></a><var>69.30</var>shall be separately certified by the county to the county auditor on or before five
         working <br/>
<a id="pl.69.31"></a><var>69.31</var>days after December 20 in each year. The taxes certified shall not be reduced by the
         county <br/>
<a id="pl.69.32"></a><var>69.32</var>auditor by the aid received under section 
         <statute_ref>273.1398, subdivision 3</statute_ref>. If a county fails to certify <br/>
<a id="pl.69.33"></a><var>69.33</var>its levy by that date, its levy shall be the amount levied by it for the preceding
         year.<br/>
<a id="pl.70.1"></a><var>70.1</var>(ii) For purposes of the proposed property tax notice under section 
         <statute_ref>275.065</statute_ref> and the <br/>
<a id="pl.70.2"></a><var>70.2</var>property tax statement under section 
         <statute_ref>276.04</statute_ref>, for the first year in which the county implements <br/>
<a id="pl.70.3"></a><var>70.3</var>the provisions of this paragraph, the county auditor shall reduce the county's levy
         for the <br/>
<a id="pl.70.4"></a><var>70.4</var>preceding year to reflect any amount levied for water management purposes under clause
         <br/>
<a id="pl.70.5"></a><var>70.5</var>(i) included in the county's levy.<br/>
<a id="pl.70.6"></a><var>70.6</var><b>EFFECTIVE DATE.</b>This section is effective for taxes payable in 2018 and thereafter.<br/>
<br/>
<a id="bill.2.9.0"></a><a id="pl.70.7"></a><var>70.7</var>    Sec. 9. Minnesota Statutes 2016, section 275.60, is amended to read:<br/>
<a id="pl.70.8"></a><var>70.8</var><b>275.60 LEVY OR BOND REFERENDUM; BALLOT NOTICE.</b><br/>
<a id="pl.70.9"></a><var>70.9</var>(a) Notwithstanding any general or special law or any charter provisions, but subject
         to <br/>
<a id="pl.70.10"></a><var>70.10</var>section 
         <statute_ref>126C.17, subdivision 9</statute_ref>, any question submitted to the voters by any local <br/>
<a id="pl.70.11"></a><var>70.11</var>governmental subdivision at a general or special an election after June 8, 1995 June 30, <br/>
<a id="pl.70.12"></a><var>70.12</var>2017, authorizing a property tax levy or tax rate increase, including the issuance of
         debt <br/>
<a id="pl.70.13"></a><var>70.13</var>obligations payable in whole or in part from property taxes, must include on the ballot
         the <br/>
<a id="pl.70.14"></a><var>70.14</var>following notice in boldface type:<br/>
<a id="pl.70.15"></a><var>70.15</var>"BY VOTING "YES" ON THIS BALLOT QUESTION, YOU ARE VOTING FOR A <br/>
<a id="pl.70.16"></a><var>70.16</var>PROPERTY TAX INCREASE."<br/>
<a id="pl.70.17"></a><var>70.17</var>(b) For purposes of this section and section 
         <statute_ref>275.61</statute_ref>, "local governmental subdivision" <br/>
<a id="pl.70.18"></a><var>70.18</var>includes counties, home rule and statutory cities, towns, school districts, and all
         special <br/>
<a id="pl.70.19"></a><var>70.19</var>taxing districts. This statement is in addition to any general or special laws or
         any charter <br/>
<a id="pl.70.20"></a><var>70.20</var>provisions that govern the contents of a ballot question and, in the case of a question
         on the <br/>
<a id="pl.70.21"></a><var>70.21</var>issuance of debt obligations, may be supplemented by a description of revenues pledged
         to <br/>
<a id="pl.70.22"></a><var>70.22</var>payment of the obligations that are intended as the primary source of payment.<br/>
<a id="pl.70.23"></a><var>70.23</var>(c) An election under this section must be held on the first Tuesday after the first
         Monday <br/>
<a id="pl.70.24"></a><var>70.24</var>in November of either an even-numbered or odd-numbered year. This paragraph does not
         <br/>
<a id="pl.70.25"></a><var>70.25</var>apply to an election on levying a tax or issuing debt obligations to finance the local
         <br/>
<a id="pl.70.26"></a><var>70.26</var>government's response to a disaster or emergency. An election for these purposes may
         be <br/>
<a id="pl.70.27"></a><var>70.27</var>held on a date set by the governing body. "Disaster" means a situation that creates
         an actual <br/>
<a id="pl.70.28"></a><var>70.28</var>or imminent serious threat to the health and safety of persons, or a situation that
         has resulted <br/>
<a id="pl.70.29"></a><var>70.29</var>or is likely to result in catastrophic loss to property or the environment. "Emergency"
         means <br/>
<a id="pl.70.30"></a><var>70.30</var>an unforeseen combination of circumstances that calls for immediate action to prevent
         a <br/>
<a id="pl.70.31"></a><var>70.31</var>disaster, identified in the referendum, from developing or occurring.<br/>
<a id="pl.71.1"></a><var>71.1</var>(c) (d) This section does not apply to a school district bond election if the debt service
         <br/>
<a id="pl.71.2"></a><var>71.2</var>payments are to be made entirely from transfers of revenue from the capital fund to
         the debt <br/>
<a id="pl.71.3"></a><var>71.3</var>service fund.<br/>
<a id="pl.71.4"></a><var>71.4</var><b>EFFECTIVE DATE.</b>This section is effective August 1, 2017, and applies to any <br/>
<a id="pl.71.5"></a><var>71.5</var>referendum authorized on or after that date.<br/>
<br/>
<a id="bill.2.10.0"></a><a id="pl.71.6"></a><var>71.6</var>    Sec. 10. <b>[275.80] LEVY INCREASE; REVERSE REFERENDUM AUTHORIZED.</b><br/>
<a id="pl.71.7"></a><var>71.7</var>    Subdivision 1. <b>Citation.</b> This section shall be known as the "Property Tax Payers' <br/>
<a id="pl.71.8"></a><var>71.8</var>Empowerment Act."<br/>
<a id="pl.71.9"></a><var>71.9</var>    Subd. 2. <b>Definitions.</b> (a) For purposes of this section, the following terms have the <br/>
<a id="pl.71.10"></a><var>71.10</var>meanings given.<br/>
<a id="pl.71.11"></a><var>71.11</var>(b) "General levy" means the total levy certified under section 275.07 by the local
         <br/>
<a id="pl.71.12"></a><var>71.12</var>governmental unit, excluding any levy that was approved by the voters at a general
         or special <br/>
<a id="pl.71.13"></a><var>71.13</var>election.<br/>
<a id="pl.71.14"></a><var>71.14</var>(c) "Local governmental unit" means a county or a statutory or home rule charter city
         <br/>
<a id="pl.71.15"></a><var>71.15</var>with a population of 500 or greater.<br/>
<a id="pl.71.16"></a><var>71.16</var>(d) "Maximum alternative levy" for taxes levied in a current year by a local governmental
         <br/>
<a id="pl.71.17"></a><var>71.17</var>unit means the sum of (1) its nondebt levy certified two years previous to the current
         year, <br/>
<a id="pl.71.18"></a><var>71.18</var>and (2) the amount of its proposed levy for the current year levied for the purposes
         listed <br/>
<a id="pl.71.19"></a><var>71.19</var>in section 275.70, subdivision 5, clauses (1) to (5).<br/>
<a id="pl.71.20"></a><var>71.20</var>(e) "Nondebt levy" means the total levy certified under section 275.07 by the local
         <br/>
<a id="pl.71.21"></a><var>71.21</var>governmental unit, minus any amount levied for the purposes listed in section 275.70,
         <br/>
<a id="pl.71.22"></a><var>71.22</var>subdivision 5, clauses (1) to (5).<br/>
<a id="pl.71.23"></a><var>71.23</var>    Subd. 3. <b>Levy increase; reverse referendum authority.</b> If the certified general levy <br/>
<a id="pl.71.24"></a><var>71.24</var>exceeds the general levy in the previous year, the voters may petition for a referendum
         on <br/>
<a id="pl.71.25"></a><var>71.25</var>the levy to be certified for the following year. The county auditor must publish information
         <br/>
<a id="pl.71.26"></a><var>71.26</var>on the right to petition for a referendum as provided in section 276.04, subdivisions
         1 and <br/>
<a id="pl.71.27"></a><var>71.27</var>2. If by June 30, a petition signed by the voters equal in number to ten percent of
         the votes <br/>
<a id="pl.71.28"></a><var>71.28</var>cast in the last general election requesting a vote on the levy is filed with the
         county auditor, <br/>
<a id="pl.71.29"></a><var>71.29</var>a question on the levy to be certified for the current year must be placed on the
         ballot at <br/>
<a id="pl.71.30"></a><var>71.30</var>either the general election or at a special election held on the first Tuesday after
         the first <br/>
<a id="pl.71.31"></a><var>71.31</var>Monday in November of the current calendar year.<br/>
<a id="pl.72.1"></a><var>72.1</var>    Subd. 4. <b>Prohibition against new debt before the election.</b> Notwithstanding any other <br/>
<a id="pl.72.2"></a><var>72.2</var>provision of law, ordinance, or local charter provision, a county or city must not
         issue any <br/>
<a id="pl.72.3"></a><var>72.3</var>new debt or obligation from the time the petition for referendum is filed with the
         county <br/>
<a id="pl.72.4"></a><var>72.4</var>auditor under subdivision 3 until the day after the referendum required under this
         section <br/>
<a id="pl.72.5"></a><var>72.5</var>is held, except as allowed in this subdivision. Refunding bonds and bonds that have
         already <br/>
<a id="pl.72.6"></a><var>72.6</var>received voter approval are exempt from the prohibition in this subdivision. For purposes
         <br/>
<a id="pl.72.7"></a><var>72.7</var>of this subdivision, "obligation" has the meaning given in section 475.51, subdivision
         3.<br/>
<a id="pl.72.8"></a><var>72.8</var>    Subd. 5. <b>Ballot question; consequence of vote.</b> (a) The question submitted to the voters <br/>
<a id="pl.72.9"></a><var>72.9</var>as required under subdivision 3 shall take the following form:<br/>
<a id="pl.72.10"></a><var>72.10</var>"The governing body of ....... has imposed the following property tax levy in the
         last <br/>
<a id="pl.72.11"></a><var>72.11</var>two years and is proposing the following maximum levy increase for the coming year:<br/>
<table>
<col width="50px"/>
<col width=""/>
<col width=""/>
<col width=""/>
<tr>
<td><a id="pl.72.12"></a><var>72.12</var><br/>
</td>
<td align="center">(previous payable year)<br/>
</td>
<td align="center">(current payable year)<br/>
</td>
<td align="center">(coming payable year)<br/>
</td>
</tr>
<tr>
<td><a id="pl.72.13"></a><var>72.13</var><br/>
</td>
<td align="center">Total levy<br/>
</td>
<td align="center">Total levy<br/>
</td>
<td align="center">Maximum proposed levy<br/>
</td>
</tr>
<tr>
<td><a id="pl.72.14"></a><var>72.14</var><br/>
</td>
<td align="center">$.......<br/>
</td>
<td align="center">$.......<br/>
</td>
<td align="center">$.......<br/>
</td>
</tr>
</table><a id="pl.72.15"></a><var>72.15</var>Shall the governing body of ....... be allowed to impose the maximum proposed levy
         <br/>
<a id="pl.72.16"></a><var>72.16</var>listed above?<br/>
<table>
<col width="50px"/>
<col width="40"/>
<col width="12.5"/>
<col width="12.5"/>
<tr>
<td><a id="pl.72.17"></a><var>72.17</var><br/>
</td>
<td></td>
<td>Yes <span>
                     							.....
                     						</span><br/>
</td>
<td></td>
</tr>
<tr>
<td><a id="pl.72.18"></a><var>72.18</var><br/>
</td>
<td></td>
<td>No <span>
                     							.....
                     						</span><br/>
</td>
<td></td>
</tr>
</table><a id="pl.72.19"></a><var>72.19</var>If the majority of votes cast are "no," its maximum allowed property tax levy for
         the <br/>
<a id="pl.72.20"></a><var>72.20</var>coming year will be reduced to its maximum alternative levy of ......."<br/>
<a id="pl.72.21"></a><var>72.21</var>(b) If a city is subject to this provision, it will provide the county auditor with
         information <br/>
<a id="pl.72.22"></a><var>72.22</var>on its proposed levy by September 30 necessary to calculate the maximum alternative
         levy <br/>
<a id="pl.72.23"></a><var>72.23</var>under subdivision 2.<br/>
<a id="pl.72.24"></a><var>72.24</var>(c) If the majority of votes cast on this question are in the affirmative, the levy
         certified <br/>
<a id="pl.72.25"></a><var>72.25</var>by the local governmental unit under section 275.07 must be less than or equal to
         its proposed <br/>
<a id="pl.72.26"></a><var>72.26</var>levy under section 275.065. If the question does not receive sufficient affirmative
         votes, <br/>
<a id="pl.72.27"></a><var>72.27</var>the levy amount that the local governmental unit certifies under section 275.07 in
         the current <br/>
<a id="pl.72.28"></a><var>72.28</var>year must be less than or equal to its maximum alternative levy as defined in subdivision
         <br/>
<a id="pl.72.29"></a><var>72.29</var>2.<br/>
<a id="pl.72.30"></a><var>72.30</var><b>EFFECTIVE DATE.</b>This section is effective for taxes payable in 2018 and thereafter.<br/>
<br/>
<a id="bill.2.11.0"></a><a id="pl.73.1"></a><var>73.1</var>    Sec. 11. Minnesota Statutes 2016, section 276.04, subdivision 1, is amended to read:<br/>
<a id="pl.73.2"></a><var>73.2</var>    Subdivision 1. <b>Auditor to publish rates.</b> On receiving the tax lists from the county <br/>
<a id="pl.73.3"></a><var>73.3</var>auditor, the county treasurer shall, if directed by the county board, give three weeks'
         published <br/>
<a id="pl.73.4"></a><var>73.4</var>notice in a newspaper specifying the rates of taxation for all general purposes and
         the <br/>
<a id="pl.73.5"></a><var>73.5</var>amounts raised for each specific purpose. If a city or county is subject to a petition of the <br/>
<a id="pl.73.6"></a><var>73.6</var>voters due to a general levy increase as provided in section 275.80, the published
         notice <br/>
<a id="pl.73.7"></a><var>73.7</var>must also include the general levy for the current year and the previous year for
         that city or <br/>
<a id="pl.73.8"></a><var>73.8</var>county along with the following statement:<br/>
<a id="pl.73.9"></a><var>73.9</var>"Because the governing body of ....... increased its nonvoter-approved levy in the
         current <br/>
<a id="pl.73.10"></a><var>73.10</var>year, the voters in that jurisdiction have the right to petition for a referendum
         under Minnesota <br/>
<a id="pl.73.11"></a><var>73.11</var>Statutes, section 275.80, on that jurisdiction's levy amount. To invoke the referendum,
         a <br/>
<a id="pl.73.12"></a><var>73.12</var>petition signed by voters equal to ten percent of the votes cast in the last general
         election <br/>
<a id="pl.73.13"></a><var>73.13</var>must be filed with the county auditor by June 30 of the current year."<br/>
<a id="pl.73.14"></a><var>73.14</var><b>EFFECTIVE DATE.</b>This section is effective for taxes payable in 2018 and thereafter.<br/>
<br/>
<a id="bill.2.12.0"></a><a id="pl.73.15"></a><var>73.15</var>    Sec. 12. Minnesota Statutes 2016, section 276.04, subdivision 2, is amended to read:<br/>
<a id="pl.73.16"></a><var>73.16</var>    Subd. 2. <b>Contents of tax statements.</b> (a) The treasurer shall provide for the printing of <br/>
<a id="pl.73.17"></a><var>73.17</var>the tax statements. The commissioner of revenue shall prescribe the form of the property
         <br/>
<a id="pl.73.18"></a><var>73.18</var>tax statement and its contents. The tax statement must not state or imply that property
         tax <br/>
<a id="pl.73.19"></a><var>73.19</var>credits are paid by the state of Minnesota. The statement must contain a tabulated
         statement <br/>
<a id="pl.73.20"></a><var>73.20</var>of the dollar amount due to each taxing authority and the amount of the state tax
         from the <br/>
<a id="pl.73.21"></a><var>73.21</var>parcel of real property for which a particular tax statement is prepared. The dollar
         amounts <br/>
<a id="pl.73.22"></a><var>73.22</var>attributable to the county, the state tax, the voter approved school tax, the other
         local school <br/>
<a id="pl.73.23"></a><var>73.23</var>tax, the township or municipality, and the total of the metropolitan special taxing
         districts <br/>
<a id="pl.73.24"></a><var>73.24</var>as defined in section 
         <statute_ref>275.065, subdivision 3</statute_ref>, paragraph (i), must be separately stated. The <br/>
<a id="pl.73.25"></a><var>73.25</var>amounts due all other special taxing districts, if any, may be aggregated except that
         any <br/>
<a id="pl.73.26"></a><var>73.26</var>levies made by the regional rail authorities in the county of Anoka, Carver, Dakota,
         Hennepin, <br/>
<a id="pl.73.27"></a><var>73.27</var>Ramsey, Scott, or Washington under chapter 398A shall be listed on a separate line
         directly <br/>
<a id="pl.73.28"></a><var>73.28</var>under the appropriate county's levy. If the county levy under this paragraph includes
         an <br/>
<a id="pl.73.29"></a><var>73.29</var>amount for a lake improvement district as defined under sections 
         <statute_ref>103B.501 </statute_ref>to 
         <statute_ref>103B.581</statute_ref>, <br/>
<a id="pl.73.30"></a><var>73.30</var>the amount attributable for that purpose must be separately stated from the remaining
         county <br/>
<a id="pl.73.31"></a><var>73.31</var>levy amount. In the case of Ramsey County, if the county levy under this paragraph
         includes <br/>
<a id="pl.73.32"></a><var>73.32</var>an amount for public library service under section 
         <statute_ref>134.07</statute_ref>, the amount attributable for that <br/>
<a id="pl.73.33"></a><var>73.33</var>purpose may be separated from the remaining county levy amount. The amount of the
         tax <br/>
<a id="pl.73.34"></a><var>73.34</var>on homesteads qualifying under the senior citizens' property tax deferral program
         under <br/>
<a id="pl.74.1"></a><var>74.1</var>chapter 290B is the total amount of property tax before subtraction of the deferred
         property <br/>
<a id="pl.74.2"></a><var>74.2</var>tax amount. The amount of the tax on contamination value imposed under sections 
         <statute_ref>270.91</statute_ref> <br/>
<a id="pl.74.3"></a><var>74.3</var>to 
         <statute_ref>270.98</statute_ref>, if any, must also be separately stated. The dollar amounts, including the dollar
         <br/>
<a id="pl.74.4"></a><var>74.4</var>amount of any special assessments, may be rounded to the nearest even whole dollar.
         For <br/>
<a id="pl.74.5"></a><var>74.5</var>purposes of this section whole odd-numbered dollars may be adjusted to the next higher
         <br/>
<a id="pl.74.6"></a><var>74.6</var>even-numbered dollar. The amount of market value excluded under section 
         <statute_ref>273.11, <br/>
<a id="pl.74.7"></a><var>74.7</var>subdivision 16
         </statute_ref>, if any, must also be listed on the tax statement.<br/>
<a id="pl.74.8"></a><var>74.8</var>    (b) The property tax statements for manufactured homes and sectional structures taxed
         <br/>
<a id="pl.74.9"></a><var>74.9</var>as personal property shall contain the same information that is required on the tax
         statements <br/>
<a id="pl.74.10"></a><var>74.10</var>for real property.<br/>
<a id="pl.74.11"></a><var>74.11</var>    (c) Real and personal property tax statements must contain the following information
         <br/>
<a id="pl.74.12"></a><var>74.12</var>in the order given in this paragraph. The information must contain the current year
         tax <br/>
<a id="pl.74.13"></a><var>74.13</var>information in the right column with the corresponding information for the previous
         year <br/>
<a id="pl.74.14"></a><var>74.14</var>in a column on the left:<br/>
<a id="pl.74.15"></a><var>74.15</var>    (1) the property's estimated market value under section 
         <statute_ref>273.11, subdivision 1</statute_ref>;<br/>
<a id="pl.74.16"></a><var>74.16</var>    (2) the property's homestead market value exclusion under section 
         <statute_ref>273.13</statute_ref>, subdivision <br/>
<a id="pl.74.17"></a><var>74.17</var>35;<br/>
<a id="pl.74.18"></a><var>74.18</var>    (3) the property's taxable market value under section 
         <statute_ref>272.03, subdivision 15</statute_ref>;<br/>
<a id="pl.74.19"></a><var>74.19</var>    (4) the property's gross tax, before credits;<br/>
<a id="pl.74.20"></a><var>74.20</var>    (5) for homestead agricultural properties, the credit under section 
         <statute_ref>273.1384</statute_ref>;<br/>
<a id="pl.74.21"></a><var>74.21</var>    (6) any credits received under sections 
         <statute_ref>273.119</statute_ref>; 
         <statute_ref>273.1234</statute_ref> or 
         <statute_ref>273.1235</statute_ref>; 
         <statute_ref>273.135</statute_ref>; <br/>
<statute_ref><a id="pl.74.22"></a><var>74.22</var>273.1391
         </statute_ref>; 
         <statute_ref>273.1398, subdivision 4</statute_ref>; 
         <statute_ref>469.171</statute_ref>; and 
         <statute_ref>473H.10</statute_ref>, except that the amount of credit <br/>
<a id="pl.74.23"></a><var>74.23</var>received under section 
         <statute_ref>273.135</statute_ref> must be separately stated and identified as "taconite tax <br/>
<a id="pl.74.24"></a><var>74.24</var>relief"; and<br/>
<a id="pl.74.25"></a><var>74.25</var>    (7) the net tax payable in the manner required in paragraph (a).<br/>
<a id="pl.74.26"></a><var>74.26</var>(d) If a city or county is subject to a petition of the voters due to a general levy
         increase <br/>
<a id="pl.74.27"></a><var>74.27</var>as provided in section 275.80, the tax statement must also include the general levy
         for the <br/>
<a id="pl.74.28"></a><var>74.28</var>current year and the previous year for that city or county along with the following
         statement:<br/>
<a id="pl.74.29"></a><var>74.29</var>    "Because the governing body of ....... increased its nonvoter-approved levy in the
         current <br/>
<a id="pl.74.30"></a><var>74.30</var>year, the voters in that jurisdiction have the right to petition for a referendum
         on that <br/>
<a id="pl.74.31"></a><var>74.31</var>jurisdiction's levy amount under Minnesota Statutes, section 275.80. To invoke the
         <br/>
<a id="pl.74.32"></a><var>74.32</var>referendum, a petition signed by voters equal to ten percent of the votes cast in
         the last <br/>
<a id="pl.75.1"></a><var>75.1</var>general election on this issue must be filed with the county auditor by June 30 of
         the current <br/>
<a id="pl.75.2"></a><var>75.2</var>year."<br/>
<a id="pl.75.3"></a><var>75.3</var>    (d) (e) If the county uses envelopes for mailing property tax statements and if the county
         <br/>
<a id="pl.75.4"></a><var>75.4</var>agrees, a taxing district may include a notice with the property tax statement notifying
         <br/>
<a id="pl.75.5"></a><var>75.5</var>taxpayers when the taxing district will begin its budget deliberations for the current
         year, <br/>
<a id="pl.75.6"></a><var>75.6</var>and encouraging taxpayers to attend the hearings. If the county allows notices to
         be included <br/>
<a id="pl.75.7"></a><var>75.7</var>in the envelope containing the property tax statement, and if more than one taxing
         district <br/>
<a id="pl.75.8"></a><var>75.8</var>relative to a given property decides to include a notice with the tax statement, the
         county <br/>
<a id="pl.75.9"></a><var>75.9</var>treasurer or auditor must coordinate the process and may combine the information on
         a <br/>
<a id="pl.75.10"></a><var>75.10</var>single announcement.<br/>
<a id="pl.75.11"></a><var>75.11</var><b>EFFECTIVE DATE.</b>This section is effective for taxes payable in 2018 and thereafter.<br/>
<br/>
<a id="bill.2.13.0"></a><a id="pl.75.12"></a><var>75.12</var>    Sec. 13. Minnesota Statutes 2016, section 412.221, subdivision 2, is amended to read:<br/>
<a id="pl.75.13"></a><var>75.13</var>    Subd. 2. <b>Contracts.</b> The council shall have power to make such contracts as may be <br/>
<a id="pl.75.14"></a><var>75.14</var>deemed necessary or desirable to make effective any power possessed by the council.
         The <br/>
<a id="pl.75.15"></a><var>75.15</var>city may purchase personal property through a conditional sales contract and real
         property <br/>
<a id="pl.75.16"></a><var>75.16</var>through a contract for deed under which contracts the seller is confined to the remedy
         of <br/>
<a id="pl.75.17"></a><var>75.17</var>recovery of the property in case of nonpayment of all or part of the purchase price,
         which <br/>
<a id="pl.75.18"></a><var>75.18</var>shall be payable over a period of not to exceed five years. When the contract price
         of property <br/>
<a id="pl.75.19"></a><var>75.19</var>to be purchased by contract for deed or conditional sales contract exceeds 0.24177
         percent <br/>
<a id="pl.75.20"></a><var>75.20</var>of the estimated market value of the city, the city may not enter into such a contract
         for at <br/>
<a id="pl.75.21"></a><var>75.21</var>least ten days after publication in the official newspaper of a council resolution
         determining <br/>
<a id="pl.75.22"></a><var>75.22</var>to purchase property by such a contract; and, if before the end of that time a petition
         asking <br/>
<a id="pl.75.23"></a><var>75.23</var>for an election on the proposition signed by voters equal to ten percent of the number
         of <br/>
<a id="pl.75.24"></a><var>75.24</var>voters at the last regular city election is filed with the clerk, the city may not
         enter into such <br/>
<a id="pl.75.25"></a><var>75.25</var>a contract until the proposition has been approved by a majority of the votes cast
         on the <br/>
<a id="pl.75.26"></a><var>75.26</var>question at a regular or special an election held on the first Tuesday after the first Monday <br/>
<a id="pl.75.27"></a><var>75.27</var>in November of either an even-numbered or odd-numbered year.<br/>
<a id="pl.75.28"></a><var>75.28</var><b>EFFECTIVE DATE.</b>This section is effective August 1, 2017, and applies to any <br/>
<a id="pl.75.29"></a><var>75.29</var>referendum authorized on or after that date.<br/>
<br/>
<a id="bill.2.14.0"></a><a id="pl.75.30"></a><var>75.30</var>    Sec. 14. Minnesota Statutes 2016, section 412.301, is amended to read:<br/>
<a id="pl.75.31"></a><var>75.31</var><b>412.301 FINANCING PURCHASE OF CERTAIN EQUIPMENT.</b><br/>
<a id="pl.76.1"></a><var>76.1</var>    (a) The council may issue certificates of indebtedness or capital notes subject to
         the city <br/>
<a id="pl.76.2"></a><var>76.2</var>debt limits to purchase capital equipment.<br/>
<a id="pl.76.3"></a><var>76.3</var>    (b) For purposes of this section, "capital equipment" means:<br/>
<a id="pl.76.4"></a><var>76.4</var>    (1) public safety equipment, ambulance and other medical equipment, road construction
         <br/>
<a id="pl.76.5"></a><var>76.5</var>and maintenance equipment, and other capital equipment; and<br/>
<a id="pl.76.6"></a><var>76.6</var>    (2) computer hardware and software, whether bundled with machinery or equipment or
         <br/>
<a id="pl.76.7"></a><var>76.7</var>unbundled, together with application development services and training related to
         the use <br/>
<a id="pl.76.8"></a><var>76.8</var>of the computer hardware or software.<br/>
<a id="pl.76.9"></a><var>76.9</var>    (c) The equipment or software must have an expected useful life at least as long as
         the <br/>
<a id="pl.76.10"></a><var>76.10</var>terms of the certificates or notes.<br/>
<a id="pl.76.11"></a><var>76.11</var>    (d) Such certificates or notes shall be payable in not more than ten years and shall
         be <br/>
<a id="pl.76.12"></a><var>76.12</var>issued on such terms and in such manner as the council may determine.<br/>
<a id="pl.76.13"></a><var>76.13</var>    (e) If the amount of the certificates or notes to be issued to finance any such purchase
         <br/>
<a id="pl.76.14"></a><var>76.14</var>exceeds 0.25 percent of the estimated market value of taxable property in the city,
         they shall <br/>
<a id="pl.76.15"></a><var>76.15</var>not be issued for at least ten days after publication in the official newspaper of
         a council <br/>
<a id="pl.76.16"></a><var>76.16</var>resolution determining to issue them; and if before the end of that time, a petition
         asking <br/>
<a id="pl.76.17"></a><var>76.17</var>for an election on the proposition signed by voters equal to ten percent of the number
         of <br/>
<a id="pl.76.18"></a><var>76.18</var>voters at the last regular municipal election is filed with the clerk, such certificates
         or notes <br/>
<a id="pl.76.19"></a><var>76.19</var>shall not be issued until the proposition of their issuance has been approved by a
         majority <br/>
<a id="pl.76.20"></a><var>76.20</var>of the votes cast on the question at a regular or special an election held on the first Tuesday <br/>
<a id="pl.76.21"></a><var>76.21</var>after the first Monday in November of either an even-numbered or odd-numbered year.<br/>
<a id="pl.76.22"></a><var>76.22</var>    (f) A tax levy shall be made for the payment of the principal and interest on such
         <br/>
<a id="pl.76.23"></a><var>76.23</var>certificates or notes, in accordance with section 
         <statute_ref>475.61</statute_ref>, as in the case of bonds.<br/>
<a id="pl.76.24"></a><var>76.24</var><b>EFFECTIVE DATE.</b>This section is effective August 1, 2017, and applies to any <br/>
<a id="pl.76.25"></a><var>76.25</var>referendum authorized on or after that date.<br/>
<br/>
<a id="bill.2.15.0"></a><a id="pl.76.26"></a><var>76.26</var>    Sec. 15. Minnesota Statutes 2016, section 426.19, subdivision 2, is amended to read:<br/>
<a id="pl.76.27"></a><var>76.27</var>    Subd. 2. <b>Referendum in certain cases.</b> Before the pledge of any such revenues to the <br/>
<a id="pl.76.28"></a><var>76.28</var>payment of any such bonds, warrants or certificates of indebtedness, except bonds,
         warrants <br/>
<a id="pl.76.29"></a><var>76.29</var>or certificates of indebtedness to construct, reconstruct, enlarge or equip a municipal
         liquor <br/>
<a id="pl.76.30"></a><var>76.30</var>store shall be made, the governing body shall submit to the voters of the city the
         question <br/>
<a id="pl.76.31"></a><var>76.31</var>of whether such revenues shall be so pledged and such pledge shall not be binding
         on the <br/>
<a id="pl.76.32"></a><var>76.32</var>city until it shall have been approved by a majority of the voters voting on the question
         at <br/>
<a id="pl.77.1"></a><var>77.1</var>either a general an election or special election called for that purpose held on the first Tuesday <br/>
<a id="pl.77.2"></a><var>77.2</var>after the first Monday in November of either an even-numbered or odd-numbered year. No <br/>
<a id="pl.77.3"></a><var>77.3</var>election shall be required for pledge of such revenues for payment of bonds, warrants
         or <br/>
<a id="pl.77.4"></a><var>77.4</var>certificates of indebtedness to construct, reconstruct, enlarge or equip a municipal
         liquor <br/>
<a id="pl.77.5"></a><var>77.5</var>store.<br/>
<a id="pl.77.6"></a><var>77.6</var><b>EFFECTIVE DATE.</b>This section is effective August 1, 2017, and applies to any <br/>
<a id="pl.77.7"></a><var>77.7</var>referendum authorized on or after that date.<br/>
<br/>
<a id="bill.2.16.0"></a><a id="pl.77.8"></a><var>77.8</var>    Sec. 16. Minnesota Statutes 2016, section 447.045, subdivision 2, is amended to read:<br/>
<a id="pl.77.9"></a><var>77.9</var>    Subd. 2. <b>Statutory city; on-sale and off-sale store.</b> If the voters of a statutory city <br/>
<a id="pl.77.10"></a><var>77.10</var>operating an on-sale and off-sale municipal liquor store, at a general or special an election <br/>
<a id="pl.77.11"></a><var>77.11</var>held on the first Tuesday after the first Monday in November of either an even-numbered
         <br/>
<a id="pl.77.12"></a><var>77.12</var>or odd-numbered year, vote in favor of contributing from its liquor dispensary fund toward <br/>
<a id="pl.77.13"></a><var>77.13</var>the construction of a community hospital, the city council may appropriate not more
         than <br/>
<a id="pl.77.14"></a><var>77.14</var>$60,000 from the fund to any incorporated nonprofit hospital association to build
         a <br/>
<a id="pl.77.15"></a><var>77.15</var>community hospital in the statutory city. The hospital must be governed by a board
         including <br/>
<a id="pl.77.16"></a><var>77.16</var>two or more members of the statutory city council and be open to all residents of
         the statutory <br/>
<a id="pl.77.17"></a><var>77.17</var>city on equal terms. This appropriation must not exceed one-half the total cost of
         construction <br/>
<a id="pl.77.18"></a><var>77.18</var>of the hospital. The council must not appropriate the money unless the average net
         earnings <br/>
<a id="pl.77.19"></a><var>77.19</var>of the on-sale and off-sale municipal liquor store have been at least $10,000 for
         the last five <br/>
<a id="pl.77.20"></a><var>77.20</var>completed fiscal years before the date of the appropriation.<br/>
<a id="pl.77.21"></a><var>77.21</var><b>EFFECTIVE DATE.</b>This section is effective August 1, 2017, and applies to any <br/>
<a id="pl.77.22"></a><var>77.22</var>referendum authorized on or after that date.<br/>
<br/>
<a id="bill.2.17.0"></a><a id="pl.77.23"></a><var>77.23</var>    Sec. 17. Minnesota Statutes 2016, section 447.045, subdivision 3, is amended to read:<br/>
<a id="pl.77.24"></a><var>77.24</var>    Subd. 3. <b>Statutory city; off-sale or on- and off-sale store.</b> (a) If a statutory city operates <br/>
<a id="pl.77.25"></a><var>77.25</var>an off-sale, or an on- and off-sale municipal liquor store it may provide for a vote
         at a general <br/>
<a id="pl.77.26"></a><var>77.26</var>or special an election held on the first Tuesday after the first Monday in November of either <br/>
<a id="pl.77.27"></a><var>77.27</var>an even-numbered or odd-numbered year on the question of contributing from the city liquor <br/>
<a id="pl.77.28"></a><var>77.28</var>dispensary fund to build, maintain, and operate a community hospital. If the vote
         is in favor, <br/>
<a id="pl.77.29"></a><var>77.29</var>the city council may appropriate money from the fund to an incorporated hospital association
         <br/>
<a id="pl.77.30"></a><var>77.30</var>for a period of four years. The appropriation must be from the net profits or proceeds
         of the <br/>
<a id="pl.77.31"></a><var>77.31</var>municipal liquor store. It must not exceed $4,000 a year for hospital construction
         and <br/>
<a id="pl.77.32"></a><var>77.32</var>maintenance or $1,000 a year for operation. The hospital must be open to all residents
         of <br/>
<a id="pl.77.33"></a><var>77.33</var>the community on equal terms.<br/>
<a id="pl.78.1"></a><var>78.1</var>(b) The council must not appropriate the money unless the average net earnings of
         the <br/>
<a id="pl.78.2"></a><var>78.2</var>off-sale, or on- and off-sale municipal liquor store have been at least $8,000 for
         the last two <br/>
<a id="pl.78.3"></a><var>78.3</var>completed years before the date of the appropriation.<br/>
<a id="pl.78.4"></a><var>78.4</var><b>EFFECTIVE DATE.</b>This section is effective August 1, 2017, and applies to any <br/>
<a id="pl.78.5"></a><var>78.5</var>referendum authorized on or after that date.<br/>
<br/>
<a id="bill.2.18.0"></a><a id="pl.78.6"></a><var>78.6</var>    Sec. 18. Minnesota Statutes 2016, section 447.045, subdivision 4, is amended to read:<br/>
<a id="pl.78.7"></a><var>78.7</var>    Subd. 4. <b>Fourth class city operating store.</b> If a city of the fourth class operates a <br/>
<a id="pl.78.8"></a><var>78.8</var>municipal liquor store, it may provide for a vote at a general or special an election held on <br/>
<a id="pl.78.9"></a><var>78.9</var>the first Tuesday after the first Monday in November of either an even-numbered or
         <br/>
<a id="pl.78.10"></a><var>78.10</var>odd-numbered year on the question of contributing from the profit in the city liquor <br/>
<a id="pl.78.11"></a><var>78.11</var>dispensary fund to build, equip, and maintain a community hospital within the city
         limits. <br/>
<a id="pl.78.12"></a><var>78.12</var>If the vote is in favor, the city council may appropriate not more than $200,000 from
         profits <br/>
<a id="pl.78.13"></a><var>78.13</var>in the fund for the purpose. The hospital must be open to all residents of the city
         on equal <br/>
<a id="pl.78.14"></a><var>78.14</var>terms.<br/>
<a id="pl.78.15"></a><var>78.15</var>The city may issue certificates of indebtedness in anticipation of and payable only
         from <br/>
<a id="pl.78.16"></a><var>78.16</var>profits from the operation of municipal liquor stores.<br/>
<a id="pl.78.17"></a><var>78.17</var><b>EFFECTIVE DATE.</b>This section is effective August 1, 2017, and applies to any <br/>
<a id="pl.78.18"></a><var>78.18</var>referendum authorized on or after that date.<br/>
<br/>
<a id="bill.2.19.0"></a><a id="pl.78.19"></a><var>78.19</var>    Sec. 19. Minnesota Statutes 2016, section 447.045, subdivision 6, is amended to read:<br/>
<a id="pl.78.20"></a><var>78.20</var>    Subd. 6. <b>Statutory city; fourth class.</b> If a fourth class statutory city operates a municipal <br/>
<a id="pl.78.21"></a><var>78.21</var>liquor store, it may provide for a vote at a general or special an election held on the first <br/>
<a id="pl.78.22"></a><var>78.22</var>Tuesday after the first Monday in November of either an even-numbered or odd-numbered
         <br/>
<a id="pl.78.23"></a><var>78.23</var>year on the question of contributing from the city liquor dispensary fund not more than
         <br/>
<a id="pl.78.24"></a><var>78.24</var>$15,000 a year for five years to build and maintain a community hospital. If the vote
         is in <br/>
<a id="pl.78.25"></a><var>78.25</var>favor the council may appropriate the money from the fund to an incorporated community
         <br/>
<a id="pl.78.26"></a><var>78.26</var>hospital association in the city.<br/>
<a id="pl.78.27"></a><var>78.27</var><b>EFFECTIVE DATE.</b>This section is effective August 1, 2017, and applies to any <br/>
<a id="pl.78.28"></a><var>78.28</var>referendum authorized on or after that date.<br/>
<br/>
<a id="bill.2.20.0"></a><a id="pl.78.29"></a><var>78.29</var>    Sec. 20. Minnesota Statutes 2016, section 447.045, subdivision 7, is amended to read:<br/>
<a id="pl.78.30"></a><var>78.30</var>    Subd. 7. <b>Statutory city; any store.</b> If a statutory city operates a municipal liquor store, <br/>
<a id="pl.78.31"></a><var>78.31</var>it may provide for a vote at a general or special an election held on the first Tuesday after <br/>
<a id="pl.79.1"></a><var>79.1</var>the first Monday in November of either an even-numbered or odd-numbered year on the <br/>
<a id="pl.79.2"></a><var>79.2</var>question of contributing from the statutory city liquor dispensary fund toward the
         acquisition, <br/>
<a id="pl.79.3"></a><var>79.3</var>construction, improvement, maintenance, and operation of a community hospital. If
         the <br/>
<a id="pl.79.4"></a><var>79.4</var>vote is in favor, the council may appropriate money from time to time out of the net
         profits <br/>
<a id="pl.79.5"></a><var>79.5</var>or proceeds of the municipal liquor store to an incorporated nonprofit hospital association
         <br/>
<a id="pl.79.6"></a><var>79.6</var>in the statutory city. The hospital association must be governed by a board of directors
         <br/>
<a id="pl.79.7"></a><var>79.7</var>elected by donors of $50 or more, who each have one vote. The hospital must be open
         to <br/>
<a id="pl.79.8"></a><var>79.8</var>all residents of the community on equal terms.<br/>
<a id="pl.79.9"></a><var>79.9</var><b>EFFECTIVE DATE.</b>This section is effective August 1, 2017, and applies to any <br/>
<a id="pl.79.10"></a><var>79.10</var>referendum authorized on or after that date.<br/>
<br/>
<a id="bill.2.21.0"></a><a id="pl.79.11"></a><var>79.11</var>    Sec. 21. Minnesota Statutes 2016, section 452.11, is amended to read:<br/>
<a id="pl.79.12"></a><var>79.12</var><b>452.11 SUBMISSION TO VOTERS.</b><br/>
<a id="pl.79.13"></a><var>79.13</var>No city of the first class shall acquire or construct any public utility under the
         terms of <br/>
<a id="pl.79.14"></a><var>79.14</var>sections 
         <statute_ref>452.08</statute_ref> to 
         <statute_ref>452.13</statute_ref> unless the proposition to acquire or construct same has first been <br/>
<a id="pl.79.15"></a><var>79.15</var>submitted to the qualified electors of the city at a general city election or at a special election <br/>
<a id="pl.79.16"></a><var>79.16</var>called for that purpose, held on the first Tuesday after the first Monday in November of <br/>
<a id="pl.79.17"></a><var>79.17</var>either an even-numbered or odd-numbered year and has been approved by a majority vote <br/>
<a id="pl.79.18"></a><var>79.18</var>of all electors voting upon the proposition.<br/>
<a id="pl.79.19"></a><var>79.19</var>The question of issuing public utility certificates as provided in section 
         <statute_ref>452.09</statute_ref> may, at <br/>
<a id="pl.79.20"></a><var>79.20</var>the option of the council, be submitted at the same election as the question of the
         acquisition <br/>
<a id="pl.79.21"></a><var>79.21</var>or construction of the public utility.<br/>
<a id="pl.79.22"></a><var>79.22</var><b>EFFECTIVE DATE.</b>This section is effective August 1, 2017, and applies to any <br/>
<a id="pl.79.23"></a><var>79.23</var>referendum authorized on or after that date.<br/>
<br/>
<a id="bill.2.22.0"></a><a id="pl.79.24"></a><var>79.24</var>    Sec. 22. Minnesota Statutes 2016, section 455.24, is amended to read:<br/>
<a id="pl.79.25"></a><var>79.25</var><b>455.24 SUBMISSION TO VOTERS.</b><br/>
<a id="pl.79.26"></a><var>79.26</var>Before incurring any expense under the powers conferred by section 
         <statute_ref>455.23</statute_ref>, the approval <br/>
<a id="pl.79.27"></a><var>79.27</var>of the voters of the city shall first be had at a general or special an election held therein on <br/>
<a id="pl.79.28"></a><var>79.28</var>the first Tuesday after the first Monday in November of either an even-numbered or
         <br/>
<a id="pl.79.29"></a><var>79.29</var>odd-numbered year. If a majority of the voters of the city participating at the election shall <br/>
<a id="pl.79.30"></a><var>79.30</var>vote in favor of the construction of the system of poles, wires and cables herein
         authorized <br/>
<a id="pl.79.31"></a><var>79.31</var>to be made, the council shall proceed with the construction.<br/>
<a id="pl.80.1"></a><var>80.1</var><b>EFFECTIVE DATE.</b>This section is effective August 1, 2017, and applies to any <br/>
<a id="pl.80.2"></a><var>80.2</var>referendum authorized on or after that date.<br/>
<br/>
<a id="bill.2.23.0"></a><a id="pl.80.3"></a><var>80.3</var>    Sec. 23. Minnesota Statutes 2016, section 455.29, is amended to read:<br/>
<a id="pl.80.4"></a><var>80.4</var><b>455.29 MUNICIPALITIES MAY EXTEND ELECTRIC SERVICE.</b><br/>
<a id="pl.80.5"></a><var>80.5</var>Except as otherwise restricted by chapter 216B, the governing body, or the commission
         <br/>
<a id="pl.80.6"></a><var>80.6</var>or board charged with the operation of the public utilities, if one exists therein,
         of any <br/>
<a id="pl.80.7"></a><var>80.7</var>municipality in the state owning and operating an electric light and power plant for
         the <br/>
<a id="pl.80.8"></a><var>80.8</var>purpose of the manufacture and sale of electrical power or for the purchase and redistribution
         <br/>
<a id="pl.80.9"></a><var>80.9</var>of electrical power, may, upon a two-thirds vote of the governing body, or the commission
         <br/>
<a id="pl.80.10"></a><var>80.10</var>or board, in addition to all other powers now possessed by such municipality, sell
         electricity <br/>
<a id="pl.80.11"></a><var>80.11</var>to customers, singly or collectively, outside of such municipality, within the state
         but not <br/>
<a id="pl.80.12"></a><var>80.12</var>to exceed a distance of 30 miles from the corporate limits of the municipality. Before
         any <br/>
<a id="pl.80.13"></a><var>80.13</var>municipality shall have the power to extend its lines and sell electricity outside
         of the <br/>
<a id="pl.80.14"></a><var>80.14</var>municipality as provided by sections 
         <statute_ref>455.29</statute_ref> and 
         <statute_ref>455.30</statute_ref>, the governing body shall first <br/>
<a id="pl.80.15"></a><var>80.15</var>submit to the voters of the municipality, at a general or special an election held on the first <br/>
<a id="pl.80.16"></a><var>80.16</var>Tuesday after the first Monday in November of either an even-numbered or odd-numbered
         <br/>
<a id="pl.80.17"></a><var>80.17</var>year, the general principle of going outside the municipality and fixing the maximum amount
         <br/>
<a id="pl.80.18"></a><var>80.18</var>of contemplated expenditures reasonably expected to be made for any and all extensions
         <br/>
<a id="pl.80.19"></a><var>80.19</var>then or thereafter contemplated. Three weeks' published notice shall be given of such
         election <br/>
<a id="pl.80.20"></a><var>80.20</var>as required by law, and if a majority of those voting upon the proposition favors
         the same, <br/>
<a id="pl.80.21"></a><var>80.21</var>then the municipality shall thereafter be considered as having chosen to enter the
         general <br/>
<a id="pl.80.22"></a><var>80.22</var>business of extending its electric light and power facilities beyond the corporate
         limits of <br/>
<a id="pl.80.23"></a><var>80.23</var>the municipality. It shall not be necessary to submit to a vote of the people the
         question of <br/>
<a id="pl.80.24"></a><var>80.24</var>any specific enlargement, extension, or improvement of any outside lines; provided
         the <br/>
<a id="pl.80.25"></a><var>80.25</var>voters of the municipality have generally elected to exercise the privileges afforded
         by <br/>
<a id="pl.80.26"></a><var>80.26</var>sections 
         <statute_ref>455.29</statute_ref> and 
         <statute_ref>455.30</statute_ref>, and, provided, that each and any specific extension, enlargement, <br/>
<a id="pl.80.27"></a><var>80.27</var>or improvement project is within the limit of the maximum expenditure authorized at
         the <br/>
<a id="pl.80.28"></a><var>80.28</var>election. In cities operating under a home rule charter, where a vote of the people
         is not <br/>
<a id="pl.80.29"></a><var>80.29</var>now required in order to extend electric light and power lines, no election shall
         be required <br/>
<a id="pl.80.30"></a><var>80.30</var>under the provisions of any act. At any election held to determine the attitude of
         the voters <br/>
<a id="pl.80.31"></a><var>80.31</var>upon this principle, the question shall be simply stated upon the ballot provided
         therefor, <br/>
<a id="pl.80.32"></a><var>80.32</var>and shall be substantially in the following form: "Shall the city of .....................
         undertake <br/>
<a id="pl.80.33"></a><var>80.33</var>the general proposition of extending its electric light and power lines beyond the
         limits of <br/>
<a id="pl.80.34"></a><var>80.34</var>the municipality, and limit the maximum expenditures for any and all future extensions
         to <br/>
<a id="pl.80.35"></a><var>80.35</var>the sum of $....................?" For this purpose every municipality is authorized
         and empowered <br/>
<a id="pl.81.1"></a><var>81.1</var>to extend the lines, wires, and fixtures of its plant to such customers and may issue
         certificates <br/>
<a id="pl.81.2"></a><var>81.2</var>of indebtedness therefor in an amount not to exceed the actual cost of the extensions
         and <br/>
<a id="pl.81.3"></a><var>81.3</var>for a term not to exceed the reasonable life of the extensions. These certificates
         of <br/>
<a id="pl.81.4"></a><var>81.4</var>indebtedness shall in no case be made a charge against the municipality, but shall
         be payable <br/>
<a id="pl.81.5"></a><var>81.5</var>and paid out of current revenues of the plant other than taxes.<br/>
<a id="pl.81.6"></a><var>81.6</var><b>EFFECTIVE DATE.</b>This section is effective August 1, 2017, and applies to any <br/>
<a id="pl.81.7"></a><var>81.7</var>referendum authorized on or after that date.<br/>
<br/>
<a id="bill.2.24.0"></a><a id="pl.81.8"></a><var>81.8</var>    Sec. 24. Minnesota Statutes 2016, section 459.06, subdivision 1, is amended to read:<br/>
<a id="pl.81.9"></a><var>81.9</var>    Subdivision 1. <b>Accept donations.</b> Any county, city, or town may by resolution of its <br/>
<a id="pl.81.10"></a><var>81.10</var>governing body accept donations of land that the governing body deems to be better
         adapted <br/>
<a id="pl.81.11"></a><var>81.11</var>for the production of timber and wood than for any other purpose, for a forest, and
         may <br/>
<a id="pl.81.12"></a><var>81.12</var>manage it on forestry principles. The donor of not less than 100 acres of any such
         land shall <br/>
<a id="pl.81.13"></a><var>81.13</var>be entitled to have the land perpetually bear the donor's name. The governing body
         of any <br/>
<a id="pl.81.14"></a><var>81.14</var>city or town, when funds are available or have been levied therefor, may, when authorized
         <br/>
<a id="pl.81.15"></a><var>81.15</var>by a majority vote by ballot of the voters voting at any general or special city election held <br/>
<a id="pl.81.16"></a><var>81.16</var>on the first Tuesday after the first Monday in November of either an even-numbered
         or <br/>
<a id="pl.81.17"></a><var>81.17</var>odd-numbered year or the annual town meeting where the question is properly submitted, <br/>
<a id="pl.81.18"></a><var>81.18</var>purchase or obtain by condemnation proceedings, and preferably at the sources of streams,
         <br/>
<a id="pl.81.19"></a><var>81.19</var>any tract of land for a forest which is better adapted for the production of timber
         and wood <br/>
<a id="pl.81.20"></a><var>81.20</var>than for any other purpose, and which is conveniently located for the purpose, and
         manage <br/>
<a id="pl.81.21"></a><var>81.21</var>it on forestry principles. The city or town may annually levy a tax on all taxable
         property <br/>
<a id="pl.81.22"></a><var>81.22</var>within its boundaries to procure and maintain such forests.<br/>
<a id="pl.81.23"></a><var>81.23</var><b>EFFECTIVE DATE.</b>This section is effective August 1, 2017, and applies to any <br/>
<a id="pl.81.24"></a><var>81.24</var>referendum authorized on or after that date.<br/>
<br/>
<a id="bill.2.25.0"></a><a id="pl.81.25"></a><var>81.25</var>    Sec. 25. Minnesota Statutes 2016, section 469.053, subdivision 5, is amended to read:<br/>
<a id="pl.81.26"></a><var>81.26</var>    Subd. 5. <b>Reverse referendum.</b> A city may increase its levy for port authority purposes <br/>
<a id="pl.81.27"></a><var>81.27</var>under subdivision 4 only as provided in this subdivision. Its city council must first
         pass a <br/>
<a id="pl.81.28"></a><var>81.28</var>resolution stating the proposed amount of levy increase. The city must then publish
         the <br/>
<a id="pl.81.29"></a><var>81.29</var>resolution together with a notice of public hearing on the resolution for two successive
         <br/>
<a id="pl.81.30"></a><var>81.30</var>weeks in its official newspaper or, if none exists, in a newspaper of general circulation
         in <br/>
<a id="pl.81.31"></a><var>81.31</var>the city. The hearing must be held two to four weeks after the first publication.
         After the <br/>
<a id="pl.81.32"></a><var>81.32</var>hearing, the city council may decide to take no action or may adopt a resolution authorizing
         <br/>
<a id="pl.81.33"></a><var>81.33</var>the proposed increase or a lesser increase. A resolution authorizing an increase must
         be <br/>
<a id="pl.82.1"></a><var>82.1</var>published in the city's official newspaper or, if none exists, in a newspaper of general
         <br/>
<a id="pl.82.2"></a><var>82.2</var>circulation in the city. The resolution is not effective if a petition requesting
         a referendum <br/>
<a id="pl.82.3"></a><var>82.3</var>on the resolution is filed with the city clerk within 30 days of publication of the
         resolution. <br/>
<a id="pl.82.4"></a><var>82.4</var>The petition must be signed by voters equaling five percent of the votes cast in the
         city in <br/>
<a id="pl.82.5"></a><var>82.5</var>the last general election. The resolution is effective if approved by a majority of
         those voting <br/>
<a id="pl.82.6"></a><var>82.6</var>on the question. The commissioner of revenue shall prepare a suggested form of referendum
         <br/>
<a id="pl.82.7"></a><var>82.7</var>question. The referendum must be held at a special or general an election before October 1 <br/>
<a id="pl.82.8"></a><var>82.8</var>of the year for which the levy increase is proposed conducted on the first Tuesday after the <br/>
<a id="pl.82.9"></a><var>82.9</var>first Monday in November of either an even-numbered or odd-numbered year. If approved
         <br/>
<a id="pl.82.10"></a><var>82.10</var>by the voters, the levy increase may take effect no sooner than the next calendar
         year.<br/>
<a id="pl.82.11"></a><var>82.11</var><b>EFFECTIVE DATE.</b>This section is effective August 1, 2017, and applies to any <br/>
<a id="pl.82.12"></a><var>82.12</var>referendum authorized on or after that date.<br/>
<br/>
<a id="bill.2.26.0"></a><a id="pl.82.13"></a><var>82.13</var>    Sec. 26. Minnesota Statutes 2016, section 469.107, subdivision 2, is amended to read:<br/>
<a id="pl.82.14"></a><var>82.14</var>    Subd. 2. <b>Reverse referendum.</b> A city may increase its levy for economic development <br/>
<a id="pl.82.15"></a><var>82.15</var>authority purposes under subdivision 1 in the following way. Its city council must
         first pass <br/>
<a id="pl.82.16"></a><var>82.16</var>a resolution stating the proposed amount of levy increase. The city must then publish
         the <br/>
<a id="pl.82.17"></a><var>82.17</var>resolution together with a notice of public hearing on the resolution for two successive
         <br/>
<a id="pl.82.18"></a><var>82.18</var>weeks in its official newspaper or if none exists in a newspaper of general circulation
         in the <br/>
<a id="pl.82.19"></a><var>82.19</var>city. The hearing must be held two to four weeks after the first publication. After
         the hearing, <br/>
<a id="pl.82.20"></a><var>82.20</var>the city council may decide to take no action or may adopt a resolution authorizing
         the <br/>
<a id="pl.82.21"></a><var>82.21</var>proposed increase or a lesser increase. A resolution authorizing an increase must
         be published <br/>
<a id="pl.82.22"></a><var>82.22</var>in the city's official newspaper or if none exists in a newspaper of general circulation
         in the <br/>
<a id="pl.82.23"></a><var>82.23</var>city. The resolution is not effective if a petition requesting a referendum on the
         resolution <br/>
<a id="pl.82.24"></a><var>82.24</var>is filed with the city clerk within 30 days of publication of the resolution. The
         petition must <br/>
<a id="pl.82.25"></a><var>82.25</var>be signed by voters equaling five percent of the votes cast in the city in the last
         general <br/>
<a id="pl.82.26"></a><var>82.26</var>election. The election referendum must be held at a general or special an election held on <br/>
<a id="pl.82.27"></a><var>82.27</var>the first Tuesday after the first Monday in November of either an even-numbered or
         <br/>
<a id="pl.82.28"></a><var>82.28</var>odd-numbered year. Notice of the election must be given in the manner required by law. <br/>
<a id="pl.82.29"></a><var>82.29</var>The notice must state the purpose and amount of the levy.<br/>
<a id="pl.82.30"></a><var>82.30</var><b>EFFECTIVE DATE.</b>This section is effective August 1, 2017, and applies to any <br/>
<a id="pl.82.31"></a><var>82.31</var>referendum authorized on or after that date.<br/>
<br/>
<a id="bill.2.27.0"></a><a id="pl.83.1"></a><var>83.1</var>    Sec. 27. Minnesota Statutes 2016, section 469.190, subdivision 1, is amended to read:<br/>
<a id="pl.83.2"></a><var>83.2</var>    Subdivision 1. <b>Authorization.</b> Notwithstanding section 
         <statute_ref>477A.016</statute_ref> or any other law, a <br/>
<a id="pl.83.3"></a><var>83.3</var>statutory or home rule charter city may by ordinance, and a town may by the affirmative
         <br/>
<a id="pl.83.4"></a><var>83.4</var>vote of the electors at the annual town meeting, or at a special town meeting, impose a tax <br/>
<a id="pl.83.5"></a><var>83.5</var>of up to three percent on the gross receipts from the furnishing for consideration
         of lodging <br/>
<a id="pl.83.6"></a><var>83.6</var>at a hotel, motel, rooming house, tourist court, or resort, other than the renting
         or leasing <br/>
<a id="pl.83.7"></a><var>83.7</var>of it for a continuous period of 30 days or more. A statutory or home rule charter
         city may <br/>
<a id="pl.83.8"></a><var>83.8</var>by ordinance impose the tax authorized under this subdivision on the camping site
         receipts <br/>
<a id="pl.83.9"></a><var>83.9</var>of a municipal campground.<br/>
<a id="pl.83.10"></a><var>83.10</var><b>EFFECTIVE DATE.</b>This section is effective August 1, 2017, and applies to any <br/>
<a id="pl.83.11"></a><var>83.11</var>referendum authorized on or after that date.<br/>
<br/>
<a id="bill.2.28.0"></a><a id="pl.83.12"></a><var>83.12</var>    Sec. 28. Minnesota Statutes 2016, section 469.190, subdivision 5, is amended to read:<br/>
<a id="pl.83.13"></a><var>83.13</var>    Subd. 5. <b>Reverse referendum.</b> If the county board passes a resolution under subdivision <br/>
<a id="pl.83.14"></a><var>83.14</var>4 to impose the tax, the resolution must be published for two successive weeks in
         a newspaper <br/>
<a id="pl.83.15"></a><var>83.15</var>of general circulation within the unorganized territory, together with a notice fixing
         a date <br/>
<a id="pl.83.16"></a><var>83.16</var>for a public hearing on the proposed tax.<br/>
<a id="pl.83.17"></a><var>83.17</var>The hearing must be held not less than two weeks nor more than four weeks after the
         <br/>
<a id="pl.83.18"></a><var>83.18</var>first publication of the notice. After the public hearing, the county board may determine
         to <br/>
<a id="pl.83.19"></a><var>83.19</var>take no further action, or may adopt a resolution authorizing the tax as originally
         proposed <br/>
<a id="pl.83.20"></a><var>83.20</var>or approving a lesser rate of tax. The resolution must be published in a newspaper
         of general <br/>
<a id="pl.83.21"></a><var>83.21</var>circulation within the unorganized territory. The voters of the unorganized territory
         may <br/>
<a id="pl.83.22"></a><var>83.22</var>request a referendum on the proposed tax by filing a petition with the county auditor
         within <br/>
<a id="pl.83.23"></a><var>83.23</var>30 days after the resolution is published. The petition must be signed by voters who
         reside <br/>
<a id="pl.83.24"></a><var>83.24</var>in the unorganized territory. The number of signatures must equal at least five percent
         of <br/>
<a id="pl.83.25"></a><var>83.25</var>the number of persons voting in the unorganized territory in the last general election.
         If such <br/>
<a id="pl.83.26"></a><var>83.26</var>a petition is timely filed, the resolution is not effective until it has been submitted
         to the <br/>
<a id="pl.83.27"></a><var>83.27</var>voters residing in the unorganized territory at a general or special an election held on the <br/>
<a id="pl.83.28"></a><var>83.28</var>first Tuesday after the first Monday in November of either an even-numbered or <br/>
<a id="pl.83.29"></a><var>83.29</var>odd-numbered year and a majority of votes cast on the question of approving the resolution <br/>
<a id="pl.83.30"></a><var>83.30</var>are in the affirmative. The commissioner of revenue shall prepare a suggested form
         of <br/>
<a id="pl.83.31"></a><var>83.31</var>question to be presented at the referendum.<br/>
<a id="pl.83.32"></a><var>83.32</var><b>EFFECTIVE DATE.</b>This section is effective August 1, 2017, and applies to any <br/>
<a id="pl.83.33"></a><var>83.33</var>referendum authorized on or after that date.<br/>
<br/>
<a id="bill.2.29.0"></a><a id="pl.84.1"></a><var>84.1</var>    Sec. 29. Minnesota Statutes 2016, section 471.57, subdivision 3, is amended to read:<br/>
<a id="pl.84.2"></a><var>84.2</var>    Subd. 3. <b>May use fund for other purposes upon vote.</b> The council of any municipality <br/>
<a id="pl.84.3"></a><var>84.3</var>which has established a public works reserve fund by an ordinance designating the
         specific <br/>
<a id="pl.84.4"></a><var>84.4</var>improvement or type of capital improvement for which the fund may be used may submit
         <br/>
<a id="pl.84.5"></a><var>84.5</var>to the voters of the municipality at any regular or special an election held on the first Tuesday <br/>
<a id="pl.84.6"></a><var>84.6</var>after the first Monday in November of either an even-numbered or odd-numbered year the <br/>
<a id="pl.84.7"></a><var>84.7</var>question of using the fund for some other purpose. If a majority of the votes cast
         on the <br/>
<a id="pl.84.8"></a><var>84.8</var>question are in favor of such diversion from the original purpose of the fund, it
         may be used <br/>
<a id="pl.84.9"></a><var>84.9</var>for any purpose so approved by the voters.<br/>
<a id="pl.84.10"></a><var>84.10</var><b>EFFECTIVE DATE.</b>This section is effective August 1, 2017, and applies to any <br/>
<a id="pl.84.11"></a><var>84.11</var>referendum authorized on or after that date.<br/>
<br/>
<a id="bill.2.30.0"></a><a id="pl.84.12"></a><var>84.12</var>    Sec. 30. Minnesota Statutes 2016, section 471.571, subdivision 3, is amended to read:<br/>
<a id="pl.84.13"></a><var>84.13</var>    Subd. 3. <b>Expenditure from fund, limitation.</b> No expenditure for any one project in <br/>
<a id="pl.84.14"></a><var>84.14</var>excess of 60 percent of one year's levy or $25,000, whichever is greater, may be made
         from <br/>
<a id="pl.84.15"></a><var>84.15</var>such permanent improvement or replacement fund in any year without first obtaining
         the <br/>
<a id="pl.84.16"></a><var>84.16</var>approval of a majority of the voters voting at a general or special municipal election held <br/>
<a id="pl.84.17"></a><var>84.17</var>on the first Tuesday after the first Monday in November of either an even-numbered
         or <br/>
<a id="pl.84.18"></a><var>84.18</var>odd-numbered year at which the question of making such expenditure has been submitted. <br/>
<a id="pl.84.19"></a><var>84.19</var>In submitting any proposal to the voters for approval, the amount proposed to be spent
         and <br/>
<a id="pl.84.20"></a><var>84.20</var>the purpose thereof shall be stated in the proposal submitted. The proceeds of such
         levies <br/>
<a id="pl.84.21"></a><var>84.21</var>may be pledged for the payment of any bonds issued pursuant to law for any purposes
         <br/>
<a id="pl.84.22"></a><var>84.22</var>authorized hereby and annual payments upon such bonds or interest may be made without
         <br/>
<a id="pl.84.23"></a><var>84.23</var>additional authorization.<br/>
<a id="pl.84.24"></a><var>84.24</var><b>EFFECTIVE DATE.</b>This section is effective August 1, 2017, and applies to any <br/>
<a id="pl.84.25"></a><var>84.25</var>referendum authorized on or after that date.<br/>
<br/>
<a id="bill.2.31.0"></a><a id="pl.84.26"></a><var>84.26</var>    Sec. 31. Minnesota Statutes 2016, section 471.572, subdivision 2, is amended to read:<br/>
<a id="pl.84.27"></a><var>84.27</var>    Subd. 2. <b>Tax levy.</b> The governing body of a city may establish, by a two-thirds vote of <br/>
<a id="pl.84.28"></a><var>84.28</var>all its members, by ordinance or resolution a reserve fund and may annually levy a
         property <br/>
<a id="pl.84.29"></a><var>84.29</var>tax for the support of the fund. The proceeds of taxes levied for its support must
         be paid <br/>
<a id="pl.84.30"></a><var>84.30</var>into the reserve fund. Any other revenue from a source not required by law to be paid
         into <br/>
<a id="pl.84.31"></a><var>84.31</var>another fund for purposes other than those provided for the use of the reserve fund
         may be <br/>
<a id="pl.84.32"></a><var>84.32</var>paid into the fund. Before a tax is levied under this section, the city must publish
         in the <br/>
<a id="pl.84.33"></a><var>84.33</var>official newspaper of the city an initial resolution authorizing the tax levy. If
         within ten <br/>
<a id="pl.85.1"></a><var>85.1</var>days after the publication a petition is filed with the city clerk requesting an election
         on the <br/>
<a id="pl.85.2"></a><var>85.2</var>tax levy signed by a number of qualified voters greater than ten percent of the number
         who <br/>
<a id="pl.85.3"></a><var>85.3</var>voted in the city at the last general election, the tax may not be levied until the
         levy has <br/>
<a id="pl.85.4"></a><var>85.4</var>been approved by a majority of the votes cast on it at a regular or special an election held <br/>
<a id="pl.85.5"></a><var>85.5</var>on the first Tuesday after the first Monday in November of either an even-numbered
         or <br/>
<a id="pl.85.6"></a><var>85.6</var>odd-numbered year.<br/>
<a id="pl.85.7"></a><var>85.7</var><b>EFFECTIVE DATE.</b>This section is effective August 1, 2017, and applies to any <br/>
<a id="pl.85.8"></a><var>85.8</var>referendum authorized on or after that date.<br/>
<br/>
<a id="bill.2.32.0"></a><a id="pl.85.9"></a><var>85.9</var>    Sec. 32. Minnesota Statutes 2016, section 471.572, subdivision 4, is amended to read:<br/>
<a id="pl.85.10"></a><var>85.10</var>    Subd. 4. <b>Use of fund for a specific purpose.</b> If the city has established a reserve fund, <br/>
<a id="pl.85.11"></a><var>85.11</var>it may submit to the voters at a regular or special an election held on the first Tuesday after <br/>
<a id="pl.85.12"></a><var>85.12</var>the first Monday in November of either an even-numbered or odd-numbered year the question <br/>
<a id="pl.85.13"></a><var>85.13</var>of whether use of the fund should be restricted to a specific improvement or type
         of capital <br/>
<a id="pl.85.14"></a><var>85.14</var>improvement. If a majority of the votes cast on the question are in favor of the limitation
         <br/>
<a id="pl.85.15"></a><var>85.15</var>on the use of the reserve fund, it may be used only for the purpose approved by the
         voters.<br/>
<a id="pl.85.16"></a><var>85.16</var><b>EFFECTIVE DATE.</b>This section is effective August 1, 2017, and applies to any <br/>
<a id="pl.85.17"></a><var>85.17</var>referendum authorized on or after that date.<br/>
<br/>
<a id="bill.2.33.0"></a><a id="pl.85.18"></a><var>85.18</var>    Sec. 33. Minnesota Statutes 2016, section 475.59, is amended to read:<br/>
<a id="pl.85.19"></a><var>85.19</var><b>475.59 MANNER OF SUBMISSION; NOTICE.</b><br/>
<a id="pl.85.20"></a><var>85.20</var>    Subdivision 1. <b>Generally; notice.</b> When the governing body of a municipality resolves <br/>
<a id="pl.85.21"></a><var>85.21</var>to issue bonds for any purpose requiring the approval of the electors, it shall provide
         for <br/>
<a id="pl.85.22"></a><var>85.22</var>submission of the proposition of their issuance at a general or special election or
         town or <br/>
<a id="pl.85.23"></a><var>85.23</var>school district meeting. Notice of such election or meeting shall be given in the
         manner <br/>
<a id="pl.85.24"></a><var>85.24</var>required by law and shall state the maximum amount and the purpose of the proposed
         issue. <br/>
<a id="pl.85.25"></a><var>85.25</var>In any school district, the school board or board of education may, according to its
         judgment <br/>
<a id="pl.85.26"></a><var>85.26</var>and discretion, submit as a single ballot question or as two or more separate questions
         in <br/>
<a id="pl.85.27"></a><var>85.27</var>the notice of election and ballots the proposition of their issuance for any one or
         more of <br/>
<a id="pl.85.28"></a><var>85.28</var>the following, stated conjunctively or in the alternative: acquisition or enlargement
         of sites, <br/>
<a id="pl.85.29"></a><var>85.29</var>acquisition, betterment, erection, furnishing, equipping of one or more new schoolhouses,
         <br/>
<a id="pl.85.30"></a><var>85.30</var>remodeling, repairing, improving, adding to, betterment, furnishing, equipping of
         one or <br/>
<a id="pl.85.31"></a><var>85.31</var>more existing schoolhouses. In any city, town, or county, the governing body may,
         according <br/>
<a id="pl.85.32"></a><var>85.32</var>to its judgment and discretion, submit as a single ballot question or as two or more
         separate <br/>
<a id="pl.85.33"></a><var>85.33</var>questions in the notice of election and ballots the proposition of their issuance,
         stated <br/>
<a id="pl.86.1"></a><var>86.1</var>conjunctively or in the alternative, for the acquisition, construction, or improvement
         of any <br/>
<a id="pl.86.2"></a><var>86.2</var>facilities at one or more locations.<br/>
<a id="pl.86.3"></a><var>86.3</var>    Subd. 2. <b>Election date.</b> An election to approve issuance of bonds under this section held <br/>
<a id="pl.86.4"></a><var>86.4</var>by a municipality other than a town must be held on the first Tuesday after the first
         Monday <br/>
<a id="pl.86.5"></a><var>86.5</var>in November of either an even-numbered or odd-numbered year. An election under this
         <br/>
<a id="pl.86.6"></a><var>86.6</var>section held by a town may be held on the same day as the annual town meeting or on
         the <br/>
<a id="pl.86.7"></a><var>86.7</var>first Tuesday after the first Monday in November of either an even-numbered or <br/>
<a id="pl.86.8"></a><var>86.8</var>odd-numbered year.<br/>
<a id="pl.86.9"></a><var>86.9</var>    Subd. 3. <b>Special laws.</b> If a referendum on the issuance of bonds or other debt obligations <br/>
<a id="pl.86.10"></a><var>86.10</var>authorized in a special law is required, it must be held on a date as provided in
         subdivision <br/>
<a id="pl.86.11"></a><var>86.11</var>2, notwithstanding any provision in the special law authorizing the referendum to
         be held <br/>
<a id="pl.86.12"></a><var>86.12</var>at any other time.<br/>
<a id="pl.86.13"></a><var>86.13</var>    Subd. 4. <b>Exception for disaster or emergency.</b> Subdivisions 2 and 3, and any other <br/>
<a id="pl.86.14"></a><var>86.14</var>law requiring an election to approve issuance of bonds or other debt obligations to
         be held <br/>
<a id="pl.86.15"></a><var>86.15</var>on the first Tuesday after the first Monday in November of either an even-numbered
         or <br/>
<a id="pl.86.16"></a><var>86.16</var>odd-numbered year, do not apply to issuance of bonds or other debt obligations to
         finance <br/>
<a id="pl.86.17"></a><var>86.17</var>the municipality's response to an emergency or disaster. "Disaster" means a situation
         that <br/>
<a id="pl.86.18"></a><var>86.18</var>creates an actual or imminent serious threat to the health and safety of persons,
         or a situation <br/>
<a id="pl.86.19"></a><var>86.19</var>that has resulted or is likely to result in catastrophic loss to property or the environment.
         <br/>
<a id="pl.86.20"></a><var>86.20</var>"Emergency" means an unforeseen combination of circumstances that calls for immediate
         <br/>
<a id="pl.86.21"></a><var>86.21</var>action to prevent a disaster, identified in the referendum, from developing or occurring.<br/>
<a id="pl.86.22"></a><var>86.22</var><b>EFFECTIVE DATE.</b>This section is effective August 1, 2017, and applies to any <br/>
<a id="pl.86.23"></a><var>86.23</var>referendum authorized on or after that date.<br/>
<br/>
<a id="bill.2.34.0"></a><a id="pl.86.24"></a><var>86.24</var>    Sec. 34. <b> REPEALER.</b><br/>
<a id="pl.86.25"></a><var>86.25</var>Minnesota Statutes 2016, section 205.10, subdivision 3, is repealed.<br/>
<a id="pl.86.26"></a><var>86.26</var><b>EFFECTIVE DATE.</b>This section is effective August 1, 2017.<br/>
<br/>
<a id="bill.3.0.0"></a>

<a id="bill.3.1.0"></a><a id="pl.86.29"></a><var>86.29</var>    Section 1. Minnesota Statutes 2016, section 127A.45, subdivision 10, is amended to read:<br/>
<a id="pl.86.30"></a><var>86.30</var>    Subd. 10. <b>Payments to school nonoperating funds.</b> Each fiscal year state general fund <br/>
<a id="pl.86.31"></a><var>86.31</var>payments for a district nonoperating fund must be made at the current year aid payment
         <br/>
<a id="pl.86.32"></a><var>86.32</var>percentage of the estimated entitlement during the fiscal year of the entitlement.
         This amount <br/>
<a id="pl.87.1"></a><var>87.1</var>shall be paid in 12 six equal monthly installments beginning in July. The amount of the <br/>
<a id="pl.87.2"></a><var>87.2</var>actual entitlement, after adjustment for actual data, minus the payments made during
         the <br/>
<a id="pl.87.3"></a><var>87.3</var>fiscal year of the entitlement must be paid prior to October 31 of the following school
         year. <br/>
<a id="pl.87.4"></a><var>87.4</var>The commissioner may make advance payments of debt service equalization aid and <br/>
<a id="pl.87.5"></a><var>87.5</var>state-paid tax credits for a district's debt service fund earlier than would occur
         under the <br/>
<a id="pl.87.6"></a><var>87.6</var>preceding schedule if the district submits evidence showing a serious cash flow problem
         in <br/>
<a id="pl.87.7"></a><var>87.7</var>the fund. The commissioner may make earlier payments during the year and, if necessary,
         <br/>
<a id="pl.87.8"></a><var>87.8</var>increase the percent of the entitlement paid to reduce the cash flow problem.<br/>
<a id="pl.87.9"></a><var>87.9</var><b>EFFECTIVE DATE.</b>This section is effective beginning with fiscal year 2019.<br/>
<br/>
<a id="bill.3.2.0"></a><a id="pl.87.10"></a><var>87.10</var>    Sec. 2. Minnesota Statutes 2016, section 127A.45, subdivision 13, is amended to read:<br/>
<a id="pl.87.11"></a><var>87.11</var>    Subd. 13. <b>Aid payment percentage.</b> Except as provided in subdivisions 10, 11, 12, 12a, <br/>
<a id="pl.87.12"></a><var>87.12</var>and 14, each fiscal year, all education aids and credits in this chapter and chapters
         120A, <br/>
<a id="pl.87.13"></a><var>87.13</var>120B, 121A, 122A, 123A, 123B, 124D, 124E, 125A, 125B, 126C, 134, and section 
         <statute_ref>273.1392</statute_ref>, <br/>
<a id="pl.87.14"></a><var>87.14</var>shall be paid at the current year aid payment percentage of the estimated entitlement
         during <br/>
<a id="pl.87.15"></a><var>87.15</var>the fiscal year of the entitlement. For the purposes of this subdivision, a district's
         estimated <br/>
<a id="pl.87.16"></a><var>87.16</var>entitlement for special education aid under section 
         <statute_ref>125A.76</statute_ref> for fiscal year 2014 and later <br/>
<a id="pl.87.17"></a><var>87.17</var>equals 97.4 percent of the district's entitlement for the current fiscal year. The
         final adjustment <br/>
<a id="pl.87.18"></a><var>87.18</var>payment, according to subdivision 9, must be the amount of the actual entitlement,
         after <br/>
<a id="pl.87.19"></a><var>87.19</var>adjustment for actual data, minus the payments made during the fiscal year of the
         entitlement.<br/>
<a id="pl.87.20"></a><var>87.20</var><b>EFFECTIVE DATE.</b>This section is effective beginning with fiscal year 2019.<br/>
<br/>
<a id="bill.3.3.0"></a><a id="pl.87.21"></a><var>87.21</var>    Sec. 3. <b>[273.1387] SCHOOL BUILDING BOND AGRICULTURAL CREDIT.</b><br/>
<a id="pl.87.22"></a><var>87.22</var>    Subdivision 1. <b>Eligibility.</b> All class 2a, 2b, and 2c property under section 273.13, <br/>
<a id="pl.87.23"></a><var>87.23</var>subdivision 23, other than property consisting of the house, garage, and immediately
         <br/>
<a id="pl.87.24"></a><var>87.24</var>surrounding one acre of land of an agricultural homestead, is eligible to receive
         the credit <br/>
<a id="pl.87.25"></a><var>87.25</var>under this section.<br/>
<a id="pl.87.26"></a><var>87.26</var>    Subd. 2. <b>Credit amount.</b> For each qualifying property, the school building bond <br/>
<a id="pl.87.27"></a><var>87.27</var>agricultural credit is equal to 50 percent of the property's eligible net tax capacity
         multiplied <br/>
<a id="pl.87.28"></a><var>87.28</var>by the school debt tax rate determined under section 275.08, subdivision 1b.<br/>
<a id="pl.87.29"></a><var>87.29</var>    Subd. 3. <b>Credit reimbursements.</b> The county auditor shall determine the tax reductions <br/>
<a id="pl.87.30"></a><var>87.30</var>allowed under this section within the county for each taxes payable year and shall
         certify <br/>
<a id="pl.87.31"></a><var>87.31</var>that amount to the commissioner of revenue as a part of the abstracts of tax lists
         submitted <br/>
<a id="pl.87.32"></a><var>87.32</var>under section 275.29. Any prior year adjustments shall also be certified on the abstracts
         of <br/>
<a id="pl.88.1"></a><var>88.1</var>tax lists. The commissioner shall review the certifications for accuracy, and may
         make such <br/>
<a id="pl.88.2"></a><var>88.2</var>changes as are deemed necessary, or return the certification to the county auditor
         for <br/>
<a id="pl.88.3"></a><var>88.3</var>correction. The credit under this section must be used to reduce the school district
         net tax <br/>
<a id="pl.88.4"></a><var>88.4</var>capacity-based property tax as provided in section 
<statute_ref>273.1393</statute_ref>.<br/>
<a id="pl.88.5"></a><var>88.5</var>    Subd. 4. <b>Payment.</b> The commissioner of revenue shall certify the total of the tax <br/>
<a id="pl.88.6"></a><var>88.6</var>reductions granted under this section for each taxes payable year within each school
         district <br/>
<a id="pl.88.7"></a><var>88.7</var>to the commissioner of education, who shall pay the reimbursement amounts to each
         school <br/>
<a id="pl.88.8"></a><var>88.8</var>district as provided in section 
<statute_ref>273.1392</statute_ref>.<br/>
<a id="pl.88.9"></a><var>88.9</var>    Subd. 5. <b>Appropriation.</b> An amount sufficient to make the payments required by this <br/>
<a id="pl.88.10"></a><var>88.10</var>section is annually appropriated from the general fund to the commissioner of education.<br/>
<a id="pl.88.11"></a><var>88.11</var><b>EFFECTIVE DATE.</b>This section is effective beginning with taxes payable in 2018.<br/>
<br/>
<a id="bill.3.4.0"></a><a id="pl.88.12"></a><var>88.12</var>    Sec. 4. Minnesota Statutes 2016, section 273.1392, is amended to read:<br/>
<a id="pl.88.13"></a><var>88.13</var><b>273.1392 PAYMENT; SCHOOL DISTRICTS.</b><br/>
<a id="pl.88.14"></a><var>88.14</var>The amounts of bovine tuberculosis credit reimbursements under section 
         <statute_ref>273.113</statute_ref>; <br/>
<a id="pl.88.15"></a><var>88.15</var>conservation tax credits under section 
         <statute_ref>273.119</statute_ref>; disaster or emergency reimbursement under <br/>
<a id="pl.88.16"></a><var>88.16</var>sections 
         <statute_ref>273.1231</statute_ref> to 
         <statute_ref>273.1235</statute_ref>; homestead and agricultural credits under section sections <br/>
<statute_ref><a id="pl.88.17"></a><var>88.17</var>273.1384
         </statute_ref> and 273.1387; aids and credits under section 
         <statute_ref>273.1398</statute_ref>; enterprise zone property <br/>
<a id="pl.88.18"></a><var>88.18</var>credit payments under section 
         <statute_ref>469.171</statute_ref>; and metropolitan agricultural preserve reduction <br/>
<a id="pl.88.19"></a><var>88.19</var>under section 
         <statute_ref>473H.10</statute_ref> for school districts, shall be certified to the Department of Education <br/>
<a id="pl.88.20"></a><var>88.20</var>by the Department of Revenue. The amounts so certified shall be paid according to
         section <br/>
<statute_ref><a id="pl.88.21"></a><var>88.21</var>127A.45
         </statute_ref>, subdivisions 9, 10, and 13.<br/>
<a id="pl.88.22"></a><var>88.22</var><b>EFFECTIVE DATE.</b>This section is effective beginning with taxes payable in 2018.<br/>
<br/>
<a id="bill.3.5.0"></a><a id="pl.88.23"></a><var>88.23</var>    Sec. 5. Minnesota Statutes 2016, section 273.1393, is amended to read:<br/>
<a id="pl.88.24"></a><var>88.24</var><b>273.1393 COMPUTATION OF NET PROPERTY TAXES.</b><br/>
<a id="pl.88.25"></a><var>88.25</var>    Notwithstanding any other provisions to the contrary, "net" property taxes are determined
         <br/>
<a id="pl.88.26"></a><var>88.26</var>by subtracting the credits in the order listed from the gross tax:<br/>
<a id="pl.88.27"></a><var>88.27</var>    (1) disaster credit as provided in sections 
         <statute_ref>273.1231</statute_ref> to 
         <statute_ref>273.1235</statute_ref>;<br/>
<a id="pl.88.28"></a><var>88.28</var>    (2) powerline credit as provided in section 
         <statute_ref>273.42</statute_ref>;<br/>
<a id="pl.88.29"></a><var>88.29</var>    (3) agricultural preserves credit as provided in section 
         <statute_ref>473H.10</statute_ref>;<br/>
<a id="pl.88.30"></a><var>88.30</var>    (4) enterprise zone credit as provided in section 
         <statute_ref>469.171</statute_ref>;<br/>
<a id="pl.89.1"></a><var>89.1</var>    (5) disparity reduction credit;<br/>
<a id="pl.89.2"></a><var>89.2</var>    (6) conservation tax credit as provided in section 
         <statute_ref>273.119</statute_ref>;<br/>
<a id="pl.89.3"></a><var>89.3</var>    (7) the school bond credit as provided in section 273.1387;<br/>
<a id="pl.89.4"></a><var>89.4</var>    (8) agricultural credit as provided in section 
         <statute_ref>273.1384</statute_ref>;<br/>
<a id="pl.89.5"></a><var>89.5</var>    (8) (9) taconite homestead credit as provided in section 
         <statute_ref>273.135</statute_ref>;<br/>
<a id="pl.89.6"></a><var>89.6</var>    (9) (10) supplemental homestead credit as provided in section 
         <statute_ref>273.1391</statute_ref>; and<br/>
<a id="pl.89.7"></a><var>89.7</var>    (10) (11) the bovine tuberculosis zone credit, as provided in section 
         <statute_ref>273.113</statute_ref>.<br/>
<a id="pl.89.8"></a><var>89.8</var>    The combination of all property tax credits must not exceed the gross tax amount.<br/>
<a id="pl.89.9"></a><var>89.9</var><b>EFFECTIVE DATE.</b>This section is effective beginning with taxes payable in 2018.<br/>
<br/>
<a id="bill.3.6.0"></a><a id="pl.89.10"></a><var>89.10</var>    Sec. 6. Minnesota Statutes 2016, section 275.065, subdivision 3, is amended to read:<br/>
<a id="pl.89.11"></a><var>89.11</var>    Subd. 3. <b>Notice of proposed property taxes.</b> (a) The county auditor shall prepare and <br/>
<a id="pl.89.12"></a><var>89.12</var>the county treasurer shall deliver after November 10 and on or before November 24
         each <br/>
<a id="pl.89.13"></a><var>89.13</var>year, by first class mail to each taxpayer at the address listed on the county's current
         year's <br/>
<a id="pl.89.14"></a><var>89.14</var>assessment roll, a notice of proposed property taxes. Upon written request by the
         taxpayer, <br/>
<a id="pl.89.15"></a><var>89.15</var>the treasurer may send the notice in electronic form or by electronic mail instead
         of on paper <br/>
<a id="pl.89.16"></a><var>89.16</var>or by ordinary mail.<br/>
<a id="pl.89.17"></a><var>89.17</var>    (b) The commissioner of revenue shall prescribe the form of the notice.<br/>
<a id="pl.89.18"></a><var>89.18</var>    (c) The notice must inform taxpayers that it contains the amount of property taxes
         each <br/>
<a id="pl.89.19"></a><var>89.19</var>taxing authority proposes to collect for taxes payable the following year. In the
         case of a <br/>
<a id="pl.89.20"></a><var>89.20</var>town, or in the case of the state general tax, the final tax amount will be its proposed
         tax. <br/>
<a id="pl.89.21"></a><var>89.21</var>The notice must clearly state for each city that has a population over 500, county,
         school <br/>
<a id="pl.89.22"></a><var>89.22</var>district, regional library authority established under section 
         <statute_ref>134.201</statute_ref>, and metropolitan taxing <br/>
<a id="pl.89.23"></a><var>89.23</var>districts as defined in paragraph (i), the time and place of a meeting for each taxing
         authority <br/>
<a id="pl.89.24"></a><var>89.24</var>in which the budget and levy will be discussed and public input allowed, prior to
         the final <br/>
<a id="pl.89.25"></a><var>89.25</var>budget and levy determination. The taxing authorities must provide the county auditor
         with <br/>
<a id="pl.89.26"></a><var>89.26</var>the information to be included in the notice on or before the time it certifies its
         proposed <br/>
<a id="pl.89.27"></a><var>89.27</var>levy under subdivision 1. The public must be allowed to speak at that meeting, which
         must <br/>
<a id="pl.89.28"></a><var>89.28</var>occur after November 24 and must not be held before 6:00 p.m. It must provide a telephone
         <br/>
<a id="pl.89.29"></a><var>89.29</var>number for the taxing authority that taxpayers may call if they have questions related
         to the <br/>
<a id="pl.89.30"></a><var>89.30</var>notice and an address where comments will be received by mail, except that no notice
         <br/>
<a id="pl.89.31"></a><var>89.31</var>required under this section shall be interpreted as requiring the printing of a personal
         <br/>
<a id="pl.89.32"></a><var>89.32</var>telephone number or address as the contact information for a taxing authority. If
         a taxing <br/>
<a id="pl.90.1"></a><var>90.1</var>authority does not maintain public offices where telephone calls can be received by
         the <br/>
<a id="pl.90.2"></a><var>90.2</var>authority, the authority may inform the county of the lack of a public telephone number
         and <br/>
<a id="pl.90.3"></a><var>90.3</var>the county shall not list a telephone number for that taxing authority.<br/>
<a id="pl.90.4"></a><var>90.4</var>    (d) The notice must state for each parcel:<br/>
<a id="pl.90.5"></a><var>90.5</var>    (1) the market value of the property as determined under section 
         <statute_ref>273.11</statute_ref>, and used for <br/>
<a id="pl.90.6"></a><var>90.6</var>computing property taxes payable in the following year and for taxes payable in the
         current <br/>
<a id="pl.90.7"></a><var>90.7</var>year as each appears in the records of the county assessor on November 1 of the current
         <br/>
<a id="pl.90.8"></a><var>90.8</var>year; and, in the case of residential property, whether the property is classified
         as homestead <br/>
<a id="pl.90.9"></a><var>90.9</var>or nonhomestead. The notice must clearly inform taxpayers of the years to which the
         market <br/>
<a id="pl.90.10"></a><var>90.10</var>values apply and that the values are final values;<br/>
<a id="pl.90.11"></a><var>90.11</var>    (2) the items listed below, shown separately by county, city or town, and state general
         <br/>
<a id="pl.90.12"></a><var>90.12</var>tax, agricultural homestead credit under section 
         <statute_ref>273.1384</statute_ref>, school building bond agricultural <br/>
<a id="pl.90.13"></a><var>90.13</var>credit under section 273.1387, voter approved school levy, other local school levy, and the <br/>
<a id="pl.90.14"></a><var>90.14</var>sum of the special taxing districts, and as a total of all taxing authorities:<br/>
<a id="pl.90.15"></a><var>90.15</var>    (i) the actual tax for taxes payable in the current year; and<br/>
<a id="pl.90.16"></a><var>90.16</var>    (ii) the proposed tax amount.<br/>
<a id="pl.90.17"></a><var>90.17</var>    If the county levy under clause (2) includes an amount for a lake improvement district
         <br/>
<a id="pl.90.18"></a><var>90.18</var>as defined under sections 
         <statute_ref>103B.501</statute_ref> to 
         <statute_ref>103B.581</statute_ref>, the amount attributable for that purpose <br/>
<a id="pl.90.19"></a><var>90.19</var>must be separately stated from the remaining county levy amount.<br/>
<a id="pl.90.20"></a><var>90.20</var>    In the case of a town or the state general tax, the final tax shall also be its proposed
         tax <br/>
<a id="pl.90.21"></a><var>90.21</var>unless the town changes its levy at a special town meeting under section 
         <statute_ref>365.52</statute_ref>. If a school <br/>
<a id="pl.90.22"></a><var>90.22</var>district has certified under section 
         <statute_ref>126C.17, subdivision 9</statute_ref>, that a referendum will be held <br/>
<a id="pl.90.23"></a><var>90.23</var>in the school district at the November general election, the county auditor must note
         next <br/>
<a id="pl.90.24"></a><var>90.24</var>to the school district's proposed amount that a referendum is pending and that, if
         approved <br/>
<a id="pl.90.25"></a><var>90.25</var>by the voters, the tax amount may be higher than shown on the notice. In the case
         of the <br/>
<a id="pl.90.26"></a><var>90.26</var>city of Minneapolis, the levy for Minneapolis Park and Recreation shall be listed
         separately <br/>
<a id="pl.90.27"></a><var>90.27</var>from the remaining amount of the city's levy. In the case of the city of St. Paul,
         the levy for <br/>
<a id="pl.90.28"></a><var>90.28</var>the St. Paul Library Agency must be listed separately from the remaining amount of
         the <br/>
<a id="pl.90.29"></a><var>90.29</var>city's levy. In the case of Ramsey County, any amount levied under section 
         <statute_ref>134.07</statute_ref> may be <br/>
<a id="pl.90.30"></a><var>90.30</var>listed separately from the remaining amount of the county's levy. In the case of a
         parcel <br/>
<a id="pl.90.31"></a><var>90.31</var>where tax increment or the fiscal disparities areawide tax under chapter 276A or 473F
         <br/>
<a id="pl.90.32"></a><var>90.32</var>applies, the proposed tax levy on the captured value or the proposed tax levy on the
         tax <br/>
<a id="pl.90.33"></a><var>90.33</var>capacity subject to the areawide tax must each be stated separately and not included
         in the <br/>
<a id="pl.90.34"></a><var>90.34</var>sum of the special taxing districts; and<br/>
<a id="pl.91.1"></a><var>91.1</var>    (3) the increase or decrease between the total taxes payable in the current year and
         the <br/>
<a id="pl.91.2"></a><var>91.2</var>total proposed taxes, expressed as a percentage.<br/>
<a id="pl.91.3"></a><var>91.3</var>    For purposes of this section, the amount of the tax on homesteads qualifying under
         the <br/>
<a id="pl.91.4"></a><var>91.4</var>senior citizens' property tax deferral program under chapter 290B is the total amount
         of <br/>
<a id="pl.91.5"></a><var>91.5</var>property tax before subtraction of the deferred property tax amount.<br/>
<a id="pl.91.6"></a><var>91.6</var>    (e) The notice must clearly state that the proposed or final taxes do not include
         the <br/>
<a id="pl.91.7"></a><var>91.7</var>following:<br/>
<a id="pl.91.8"></a><var>91.8</var>    (1) special assessments;<br/>
<a id="pl.91.9"></a><var>91.9</var>    (2) levies approved by the voters after the date the proposed taxes are certified,
         including <br/>
<a id="pl.91.10"></a><var>91.10</var>bond referenda and school district levy referenda;<br/>
<a id="pl.91.11"></a><var>91.11</var>    (3) a levy limit increase approved by the voters by the first Tuesday after the first
         Monday <br/>
<a id="pl.91.12"></a><var>91.12</var>in November of the levy year as provided under section 
         <statute_ref>275.73</statute_ref>;<br/>
<a id="pl.91.13"></a><var>91.13</var>    (4) amounts necessary to pay cleanup or other costs due to a natural disaster occurring
         <br/>
<a id="pl.91.14"></a><var>91.14</var>after the date the proposed taxes are certified;<br/>
<a id="pl.91.15"></a><var>91.15</var>    (5) amounts necessary to pay tort judgments against the taxing authority that become
         <br/>
<a id="pl.91.16"></a><var>91.16</var>final after the date the proposed taxes are certified; and<br/>
<a id="pl.91.17"></a><var>91.17</var>    (6) the contamination tax imposed on properties which received market value reductions
         <br/>
<a id="pl.91.18"></a><var>91.18</var>for contamination.<br/>
<a id="pl.91.19"></a><var>91.19</var>    (f) Except as provided in subdivision 7, failure of the county auditor to prepare
         or the <br/>
<a id="pl.91.20"></a><var>91.20</var>county treasurer to deliver the notice as required in this section does not invalidate
         the <br/>
<a id="pl.91.21"></a><var>91.21</var>proposed or final tax levy or the taxes payable pursuant to the tax levy.<br/>
<a id="pl.91.22"></a><var>91.22</var>    (g) If the notice the taxpayer receives under this section lists the property as <br/>
<a id="pl.91.23"></a><var>91.23</var>nonhomestead, and satisfactory documentation is provided to the county assessor by
         the <br/>
<a id="pl.91.24"></a><var>91.24</var>applicable deadline, and the property qualifies for the homestead classification in
         that <br/>
<a id="pl.91.25"></a><var>91.25</var>assessment year, the assessor shall reclassify the property to homestead for taxes
         payable <br/>
<a id="pl.91.26"></a><var>91.26</var>in the following year.<br/>
<a id="pl.91.27"></a><var>91.27</var>    (h) In the case of class 4 residential property used as a residence for lease or rental
         <br/>
<a id="pl.91.28"></a><var>91.28</var>periods of 30 days or more, the taxpayer must either:<br/>
<a id="pl.91.29"></a><var>91.29</var>    (1) mail or deliver a copy of the notice of proposed property taxes to each tenant,
         renter, <br/>
<a id="pl.91.30"></a><var>91.30</var>or lessee; or<br/>
<a id="pl.91.31"></a><var>91.31</var>    (2) post a copy of the notice in a conspicuous place on the premises of the property.<br/>
<a id="pl.92.1"></a><var>92.1</var>    The notice must be mailed or posted by the taxpayer by November 27 or within three
         <br/>
<a id="pl.92.2"></a><var>92.2</var>days of receipt of the notice, whichever is later. A taxpayer may notify the county
         treasurer <br/>
<a id="pl.92.3"></a><var>92.3</var>of the address of the taxpayer, agent, caretaker, or manager of the premises to which
         the <br/>
<a id="pl.92.4"></a><var>92.4</var>notice must be mailed in order to fulfill the requirements of this paragraph.<br/>
<a id="pl.92.5"></a><var>92.5</var>    (i) For purposes of this subdivision and subdivision 6, "metropolitan special taxing
         <br/>
<a id="pl.92.6"></a><var>92.6</var>districts" means the following taxing districts in the seven-county metropolitan area
         that <br/>
<a id="pl.92.7"></a><var>92.7</var>levy a property tax for any of the specified purposes listed below:<br/>
<a id="pl.92.8"></a><var>92.8</var>    (1) Metropolitan Council under section 
         <statute_ref>473.132</statute_ref>, 
         <statute_ref>473.167</statute_ref>, 
         <statute_ref>473.249</statute_ref>, 
         <statute_ref>473.325</statute_ref>, 
         <statute_ref>473.446</statute_ref>, <br/>
<statute_ref><a id="pl.92.9"></a><var>92.9</var>473.521
         </statute_ref>, 
         <statute_ref>473.547</statute_ref>, or 
         <statute_ref>473.834</statute_ref>;<br/>
<a id="pl.92.10"></a><var>92.10</var>    (2) Metropolitan Airports Commission under section 
         <statute_ref>473.667</statute_ref>, 
         <statute_ref>473.671</statute_ref>, or 
         <statute_ref>473.672</statute_ref>; and<br/>
<a id="pl.92.11"></a><var>92.11</var>    (3) Metropolitan Mosquito Control Commission under section 
         <statute_ref>473.711</statute_ref>.<br/>
<a id="pl.92.12"></a><var>92.12</var>    For purposes of this section, any levies made by the regional rail authorities in
         the county <br/>
<a id="pl.92.13"></a><var>92.13</var>of Anoka, Carver, Dakota, Hennepin, Ramsey, Scott, or Washington under chapter 398A
         <br/>
<a id="pl.92.14"></a><var>92.14</var>shall be included with the appropriate county's levy.<br/>
<a id="pl.92.15"></a><var>92.15</var>    (j) The governing body of a county, city, or school district may, with the consent
         of the <br/>
<a id="pl.92.16"></a><var>92.16</var>county board, include supplemental information with the statement of proposed property
         <br/>
<a id="pl.92.17"></a><var>92.17</var>taxes about the impact of state aid increases or decreases on property tax increases
         or <br/>
<a id="pl.92.18"></a><var>92.18</var>decreases and on the level of services provided in the affected jurisdiction. This
         supplemental <br/>
<a id="pl.92.19"></a><var>92.19</var>information may include information for the following year, the current year, and
         for as <br/>
<a id="pl.92.20"></a><var>92.20</var>many consecutive preceding years as deemed appropriate by the governing body of the
         <br/>
<a id="pl.92.21"></a><var>92.21</var>county, city, or school district. It may include only information regarding:<br/>
<a id="pl.92.22"></a><var>92.22</var>    (1) the impact of inflation as measured by the implicit price deflator for state and
         local <br/>
<a id="pl.92.23"></a><var>92.23</var>government purchases;<br/>
<a id="pl.92.24"></a><var>92.24</var>    (2) population growth and decline;<br/>
<a id="pl.92.25"></a><var>92.25</var>    (3) state or federal government action; and<br/>
<a id="pl.92.26"></a><var>92.26</var>    (4) other financial factors that affect the level of property taxation and local services
         <br/>
<a id="pl.92.27"></a><var>92.27</var>that the governing body of the county, city, or school district may deem appropriate
         to <br/>
<a id="pl.92.28"></a><var>92.28</var>include.<br/>
<a id="pl.92.29"></a><var>92.29</var>    The information may be presented using tables, written narrative, and graphic <br/>
<a id="pl.92.30"></a><var>92.30</var>representations and may contain instruction toward further sources of information
         or <br/>
<a id="pl.92.31"></a><var>92.31</var>opportunity for comment.<br/>
<a id="pl.92.32"></a><var>92.32</var><b>EFFECTIVE DATE.</b>This section is effective beginning with taxes payable in 2018.<br/>
<br/>
<a id="bill.3.7.0"></a><a id="pl.93.1"></a><var>93.1</var>    Sec. 7. Minnesota Statutes 2016, section 275.07, subdivision 2, is amended to read:<br/>
<a id="pl.93.2"></a><var>93.2</var>    Subd. 2. <b>School district </b><b>in more than one county</b><b> levies; special requirements</b><b>.</b> (a) In <br/>
<a id="pl.93.3"></a><var>93.3</var>school districts lying in more than one county, the clerk shall certify the tax levied
         to the <br/>
<a id="pl.93.4"></a><var>93.4</var>auditor of the county in which the administrative offices of the school district are
         located.<br/>
<a id="pl.93.5"></a><var>93.5</var>(b) The district must identify the portion of the school district levy that is levied
         for debt <br/>
<a id="pl.93.6"></a><var>93.6</var>service at the time the levy is certified under this section. For the purposes of
         this paragraph, <br/>
<a id="pl.93.7"></a><var>93.7</var>"levied for debt service" means levies authorized under sections 123B.53, 123B.535,
         and <br/>
<a id="pl.93.8"></a><var>93.8</var>123B.55, as adjusted by sections 126C.46 and 126C.48, net of any debt excess levy
         reductions <br/>
<a id="pl.93.9"></a><var>93.9</var>under section 475.61, subdivision 4, excluding debt service amounts necessary for
         repayment <br/>
<a id="pl.93.10"></a><var>93.10</var>of other postemployment benefits under section 475.52, subdivision 6.<br/>
<a id="pl.93.11"></a><var>93.11</var><b>EFFECTIVE DATE.</b>This section is effective beginning with taxes payable in 2018.<br/>
<br/>
<a id="bill.3.8.0"></a><a id="pl.93.12"></a><var>93.12</var>    Sec. 8. Minnesota Statutes 2016, section 275.08, subdivision 1b, is amended to read:<br/>
<a id="pl.93.13"></a><var>93.13</var>    Subd. 1b. <b>Computation of tax rates.</b> (a) The amounts certified to be levied against net <br/>
<a id="pl.93.14"></a><var>93.14</var>tax capacity under section 
         <statute_ref>275.07</statute_ref> by an individual local government unit shall be divided <br/>
<a id="pl.93.15"></a><var>93.15</var>by the total net tax capacity of all taxable properties within the local government
         unit's <br/>
<a id="pl.93.16"></a><var>93.16</var>taxing jurisdiction. The resulting ratio, the local government's local tax rate, multiplied
         by <br/>
<a id="pl.93.17"></a><var>93.17</var>each property's net tax capacity shall be each property's net tax capacity tax for
         that local <br/>
<a id="pl.93.18"></a><var>93.18</var>government unit before reduction by any credits.<br/>
<a id="pl.93.19"></a><var>93.19</var>(b) The auditor must also determine the school debt tax rate for each school district
         equal <br/>
<a id="pl.93.20"></a><var>93.20</var>to (1) the school debt service levy certified under section 275.07, subdivision 2,
         divided by <br/>
<a id="pl.93.21"></a><var>93.21</var>(2) the total net tax capacity of all taxable property within the district.<br/>
<a id="pl.93.22"></a><var>93.22</var>(c) Any amount certified to the county auditor to be levied against market value shall
         <br/>
<a id="pl.93.23"></a><var>93.23</var>be divided by the total referendum market value of all taxable properties within the
         taxing <br/>
<a id="pl.93.24"></a><var>93.24</var>district. The resulting ratio, the taxing district's new referendum tax rate, multiplied
         by each <br/>
<a id="pl.93.25"></a><var>93.25</var>property's referendum market value shall be each property's new referendum tax before
         <br/>
<a id="pl.93.26"></a><var>93.26</var>reduction by any credits. For the purposes of this subdivision, "referendum market
         value" <br/>
<a id="pl.93.27"></a><var>93.27</var>means the market value as defined in section 
         <statute_ref>126C.01, subdivision 3</statute_ref>.<br/>
<a id="pl.93.28"></a><var>93.28</var><b>EFFECTIVE DATE.</b>This section is effective beginning with taxes payable in 2018.<br/>
<br/>
<a id="bill.3.9.0"></a><a id="pl.93.29"></a><var>93.29</var>    Sec. 9. Minnesota Statutes 2016, section 276.04, subdivision 2, is amended to read:<br/>
<a id="pl.93.30"></a><var>93.30</var>    Subd. 2. <b>Contents of tax statements.</b> (a) The treasurer shall provide for the printing of <br/>
<a id="pl.93.31"></a><var>93.31</var>the tax statements. The commissioner of revenue shall prescribe the form of the property
         <br/>
<a id="pl.93.32"></a><var>93.32</var>tax statement and its contents. The tax statement must not state or imply that property
         tax <br/>
<a id="pl.94.1"></a><var>94.1</var>credits are paid by the state of Minnesota. The statement must contain a tabulated
         statement <br/>
<a id="pl.94.2"></a><var>94.2</var>of the dollar amount due to each taxing authority and the amount of the state tax
         from the <br/>
<a id="pl.94.3"></a><var>94.3</var>parcel of real property for which a particular tax statement is prepared. The dollar
         amounts <br/>
<a id="pl.94.4"></a><var>94.4</var>attributable to the county, the state tax, the voter approved school tax, the other
         local school <br/>
<a id="pl.94.5"></a><var>94.5</var>tax, the township or municipality, and the total of the metropolitan special taxing
         districts <br/>
<a id="pl.94.6"></a><var>94.6</var>as defined in section 
         <statute_ref>275.065, subdivision 3</statute_ref>, paragraph (i), must be separately stated. The <br/>
<a id="pl.94.7"></a><var>94.7</var>amounts due all other special taxing districts, if any, may be aggregated except that
         any <br/>
<a id="pl.94.8"></a><var>94.8</var>levies made by the regional rail authorities in the county of Anoka, Carver, Dakota,
         Hennepin, <br/>
<a id="pl.94.9"></a><var>94.9</var>Ramsey, Scott, or Washington under chapter 398A shall be listed on a separate line
         directly <br/>
<a id="pl.94.10"></a><var>94.10</var>under the appropriate county's levy. If the county levy under this paragraph includes
         an <br/>
<a id="pl.94.11"></a><var>94.11</var>amount for a lake improvement district as defined under sections 
         <statute_ref>103B.501 </statute_ref>to 
         <statute_ref>103B.581</statute_ref>, <br/>
<a id="pl.94.12"></a><var>94.12</var>the amount attributable for that purpose must be separately stated from the remaining
         county <br/>
<a id="pl.94.13"></a><var>94.13</var>levy amount. In the case of Ramsey County, if the county levy under this paragraph
         includes <br/>
<a id="pl.94.14"></a><var>94.14</var>an amount for public library service under section 
         <statute_ref>134.07</statute_ref>, the amount attributable for that <br/>
<a id="pl.94.15"></a><var>94.15</var>purpose may be separated from the remaining county levy amount. The amount of the
         tax <br/>
<a id="pl.94.16"></a><var>94.16</var>on homesteads qualifying under the senior citizens' property tax deferral program
         under <br/>
<a id="pl.94.17"></a><var>94.17</var>chapter 290B is the total amount of property tax before subtraction of the deferred
         property <br/>
<a id="pl.94.18"></a><var>94.18</var>tax amount. The amount of the tax on contamination value imposed under sections 
         <statute_ref>270.91</statute_ref> <br/>
<a id="pl.94.19"></a><var>94.19</var>to 
         <statute_ref>270.98</statute_ref>, if any, must also be separately stated. The dollar amounts, including the dollar
         <br/>
<a id="pl.94.20"></a><var>94.20</var>amount of any special assessments, may be rounded to the nearest even whole dollar.
         For <br/>
<a id="pl.94.21"></a><var>94.21</var>purposes of this section whole odd-numbered dollars may be adjusted to the next higher
         <br/>
<a id="pl.94.22"></a><var>94.22</var>even-numbered dollar. The amount of market value excluded under section 
         <statute_ref>273.11, <br/>
<a id="pl.94.23"></a><var>94.23</var>subdivision 16
         </statute_ref>, if any, must also be listed on the tax statement.<br/>
<a id="pl.94.24"></a><var>94.24</var>    (b) The property tax statements for manufactured homes and sectional structures taxed
         <br/>
<a id="pl.94.25"></a><var>94.25</var>as personal property shall contain the same information that is required on the tax
         statements <br/>
<a id="pl.94.26"></a><var>94.26</var>for real property.<br/>
<a id="pl.94.27"></a><var>94.27</var>    (c) Real and personal property tax statements must contain the following information
         <br/>
<a id="pl.94.28"></a><var>94.28</var>in the order given in this paragraph. The information must contain the current year
         tax <br/>
<a id="pl.94.29"></a><var>94.29</var>information in the right column with the corresponding information for the previous
         year <br/>
<a id="pl.94.30"></a><var>94.30</var>in a column on the left:<br/>
<a id="pl.94.31"></a><var>94.31</var>    (1) the property's estimated market value under section 
         <statute_ref>273.11, subdivision 1</statute_ref>;<br/>
<a id="pl.94.32"></a><var>94.32</var>    (2) the property's homestead market value exclusion under section 
         <statute_ref>273.13</statute_ref>, subdivision <br/>
<a id="pl.94.33"></a><var>94.33</var>35;<br/>
<a id="pl.94.34"></a><var>94.34</var>    (3) the property's taxable market value under section 
         <statute_ref>272.03, subdivision 15</statute_ref>;<br/>
<a id="pl.95.1"></a><var>95.1</var>    (4) the property's gross tax, before credits;<br/>
<a id="pl.95.2"></a><var>95.2</var>    (5) for homestead agricultural properties, the credit credits under section sections <br/>
<statute_ref><a id="pl.95.3"></a><var>95.3</var>273.1384 and 273.1387
</statute_ref>;<br/>
<a id="pl.95.4"></a><var>95.4</var>    (6) any credits received under sections 
         <statute_ref>273.119</statute_ref>; 
         <statute_ref>273.1234</statute_ref> or 
         <statute_ref>273.1235</statute_ref>; 
         <statute_ref>273.135</statute_ref>; <br/>
<statute_ref><a id="pl.95.5"></a><var>95.5</var>273.1391
         </statute_ref>; 
         <statute_ref>273.1398, subdivision 4</statute_ref>; 
         <statute_ref>469.171</statute_ref>; and 
         <statute_ref>473H.10</statute_ref>, except that the amount of credit <br/>
<a id="pl.95.6"></a><var>95.6</var>received under section 
         <statute_ref>273.135</statute_ref> must be separately stated and identified as "taconite tax <br/>
<a id="pl.95.7"></a><var>95.7</var>relief"; and<br/>
<a id="pl.95.8"></a><var>95.8</var>    (7) the net tax payable in the manner required in paragraph (a).<br/>
<a id="pl.95.9"></a><var>95.9</var>    (d) If the county uses envelopes for mailing property tax statements and if the county
         <br/>
<a id="pl.95.10"></a><var>95.10</var>agrees, a taxing district may include a notice with the property tax statement notifying
         <br/>
<a id="pl.95.11"></a><var>95.11</var>taxpayers when the taxing district will begin its budget deliberations for the current
         year, <br/>
<a id="pl.95.12"></a><var>95.12</var>and encouraging taxpayers to attend the hearings. If the county allows notices to
         be included <br/>
<a id="pl.95.13"></a><var>95.13</var>in the envelope containing the property tax statement, and if more than one taxing
         district <br/>
<a id="pl.95.14"></a><var>95.14</var>relative to a given property decides to include a notice with the tax statement, the
         county <br/>
<a id="pl.95.15"></a><var>95.15</var>treasurer or auditor must coordinate the process and may combine the information on
         a <br/>
<a id="pl.95.16"></a><var>95.16</var>single announcement.<br/>
<a id="pl.95.17"></a><var>95.17</var><b>EFFECTIVE DATE.</b>This section is effective beginning with taxes payable in 2018.<br/>
<br/>
<a id="bill.3.10.0"></a><a id="pl.95.18"></a><var>95.18</var>    Sec. 10. Minnesota Statutes 2016, section 290A.03, subdivision 11, is amended to read:<br/>
<a id="pl.95.19"></a><var>95.19</var>    Subd. 11. <b>Rent constituting property taxes.</b> (a) "Rent constituting property taxes" <br/>
<a id="pl.95.20"></a><var>95.20</var>means 17 percent a percentage of the gross rent actually paid in cash, or its equivalent, or <br/>
<a id="pl.95.21"></a><var>95.21</var>the portion of rent paid in lieu of property taxes, in any calendar year by a claimant
         for the <br/>
<a id="pl.95.22"></a><var>95.22</var>right of occupancy of the claimant's Minnesota homestead in the calendar year, and
         which <br/>
<a id="pl.95.23"></a><var>95.23</var>rent constitutes the basis, in the succeeding calendar year of a claim for relief
         under this <br/>
<a id="pl.95.24"></a><var>95.24</var>chapter by the claimant.<br/>
<a id="pl.95.25"></a><var>95.25</var>(b) The percentage in paragraph (a) is set by major geographic regions as follows:<br/>
<a id="pl.95.26"></a><var>95.26</var>(1) for the city of Minneapolis, 16.5 percent;<br/>
<a id="pl.95.27"></a><var>95.27</var>(2) for the city of St. Paul, 14 percent;<br/>
<a id="pl.95.28"></a><var>95.28</var>(3) for the counties of Anoka; Dakota; Hennepin, excluding the city of Minneapolis;
         <br/>
<a id="pl.95.29"></a><var>95.29</var>and Ramsey, excluding the city of St. Paul, 15 percent; and<br/>
<a id="pl.95.30"></a><var>95.30</var>(4) for the remainder of the state, 14 percent.<br/>
<a id="pl.96.1"></a><var>96.1</var><b>EFFECTIVE DATE.</b>This section is effective for refunds based on rent paid in 2017 <br/>
<a id="pl.96.2"></a><var>96.2</var>and following years.<br/>
<br/>
<a id="bill.3.11.0"></a><a id="pl.96.3"></a><var>96.3</var>    Sec. 11. Minnesota Statutes 2016, section 290A.03, subdivision 13, is amended to read:<br/>
<a id="pl.96.4"></a><var>96.4</var>    Subd. 13. <b>Property taxes payable.</b> "Property taxes payable" means the property tax <br/>
<a id="pl.96.5"></a><var>96.5</var>exclusive of special assessments, penalties, and interest payable on a claimant's
         homestead <br/>
<a id="pl.96.6"></a><var>96.6</var>after deductions made under sections 
         <statute_ref>273.135</statute_ref>, 
         <statute_ref>273.1384</statute_ref>, 
         <statute_ref>273.1391</statute_ref>, 
         <statute_ref>273.42, subdivision 2</statute_ref>, <br/>
<a id="pl.96.7"></a><var>96.7</var>and any other state paid property tax credits in any calendar year, and after any
         refund <br/>
<a id="pl.96.8"></a><var>96.8</var>claimed and allowable under section 
         <statute_ref>290A.04, subdivision 2h</statute_ref>, that is first payable in the <br/>
<a id="pl.96.9"></a><var>96.9</var>year that the property tax is payable. In the case of a claimant who makes ground
         lease <br/>
<a id="pl.96.10"></a><var>96.10</var>payments, "property taxes payable" includes the amount of the payments directly attributable
         <br/>
<a id="pl.96.11"></a><var>96.11</var>to the property taxes assessed against the parcel on which the house is located. No
         <br/>
<a id="pl.96.12"></a><var>96.12</var>apportionment or reduction of the "property taxes payable" shall be required for the
         use of <br/>
<a id="pl.96.13"></a><var>96.13</var>a portion of the claimant's homestead for a business purpose if the claimant does
         not deduct <br/>
<a id="pl.96.14"></a><var>96.14</var>any business depreciation expenses for the use of a portion of the homestead in the
         <br/>
<a id="pl.96.15"></a><var>96.15</var>determination of federal adjusted gross income. For homesteads which are manufactured
         <br/>
<a id="pl.96.16"></a><var>96.16</var>homes as defined in section 
         <statute_ref>273.125, subdivision 8</statute_ref>, and for homesteads which are park <br/>
<a id="pl.96.17"></a><var>96.17</var>trailers taxed as manufactured homes under section 
         <statute_ref>168.012, subdivision 9</statute_ref>, "property taxes <br/>
<a id="pl.96.18"></a><var>96.18</var>payable" shall also include 17 percent a percentage of the gross rent paid in the preceding <br/>
<a id="pl.96.19"></a><var>96.19</var>year for the site on which the homestead is located. The percentage equals the percentage <br/>
<a id="pl.96.20"></a><var>96.20</var>set under subdivision 11 for the geographic region in which the homestead is located.
         When <br/>
<a id="pl.96.21"></a><var>96.21</var>a homestead is owned by two or more persons as joint tenants or tenants in common,
         such <br/>
<a id="pl.96.22"></a><var>96.22</var>tenants shall determine between them which tenant may claim the property taxes payable
         <br/>
<a id="pl.96.23"></a><var>96.23</var>on the homestead. If they are unable to agree, the matter shall be referred to the
         commissioner <br/>
<a id="pl.96.24"></a><var>96.24</var>of revenue whose decision shall be final. Property taxes are considered payable in
         the year <br/>
<a id="pl.96.25"></a><var>96.25</var>prescribed by law for payment of the taxes.<br/>
<a id="pl.96.26"></a><var>96.26</var>In the case of a claim relating to "property taxes payable," the claimant must have
         owned <br/>
<a id="pl.96.27"></a><var>96.27</var>and occupied the homestead on January 2 of the year in which the tax is payable and
         (i) the <br/>
<a id="pl.96.28"></a><var>96.28</var>property must have been classified as homestead property pursuant to section 
         <statute_ref>273.124</statute_ref>, on <br/>
<a id="pl.96.29"></a><var>96.29</var>or before December 15 of the assessment year to which the "property taxes payable"
         relate; <br/>
<a id="pl.96.30"></a><var>96.30</var>or (ii) the claimant must provide documentation from the local assessor that application
         for <br/>
<a id="pl.96.31"></a><var>96.31</var>homestead classification has been made on or before December 15 of the year in which
         the <br/>
<a id="pl.96.32"></a><var>96.32</var>"property taxes payable" were payable and that the assessor has approved the application.<br/>
<a id="pl.96.33"></a><var>96.33</var><b>EFFECTIVE DATE.</b>This section is effective for refunds based on rent paid in 2017 <br/>
<a id="pl.96.34"></a><var>96.34</var>and following years.<br/>
<br/>
<a id="bill.3.12.0"></a><a id="pl.97.1"></a><var>97.1</var>    Sec. 12. Minnesota Statutes 2016, section 469.169, is amended by adding a subdivision <br/>
<a id="pl.97.2"></a><var>97.2</var>to read:<br/>
<a id="pl.97.3"></a><var>97.3</var>    Subd. 20. <b>Additional border city allocations.</b> (a) In addition to the tax reductions <br/>
<a id="pl.97.4"></a><var>97.4</var>authorized in subdivisions 12 to 19, the commissioner shall allocate $3,000,000 for
         tax <br/>
<a id="pl.97.5"></a><var>97.5</var>reductions to border city enterprise zones in cities located on the western border
         of  the state. <br/>
<a id="pl.97.6"></a><var>97.6</var>The commissioner shall allocate this amount among cities on a per capita basis. Allocations
         <br/>
<a id="pl.97.7"></a><var>97.7</var>under this subdivision may be used for tax reductions under sections 469.171, 469.1732,
         <br/>
<a id="pl.97.8"></a><var>97.8</var>and 469.1734, or for other offsets of taxes imposed on or remitted by businesses located
         in <br/>
<a id="pl.97.9"></a><var>97.9</var>the enterprise zone, but only if the municipality determines that the granting of
         the tax <br/>
<a id="pl.97.10"></a><var>97.10</var>reduction or offset is necessary to retain a business within or attract a business
         to the zone.<br/>
<a id="pl.97.11"></a><var>97.11</var>(b) The allocations under this subdivision do not cancel or expire, but remain available
         <br/>
<a id="pl.97.12"></a><var>97.12</var>until used by the city.<br/>
<br/>
<a id="bill.3.13.0"></a><a id="pl.97.13"></a><var>97.13</var>    Sec. 13. Minnesota Statutes 2016, section 477A.011, subdivision 34, is amended to read:<br/>
<a id="pl.97.14"></a><var>97.14</var>    Subd. 34. <b>City revenue need.</b> (a) For a city with a population equal to or greater than <br/>
<a id="pl.97.15"></a><var>97.15</var>10,000, "city revenue need" is 1.15 times the sum of (1) 4.59 times the pre-1940 housing
         <br/>
<a id="pl.97.16"></a><var>97.16</var>percentage; plus (2) 0.622 times the percent of housing built between 1940 and 1970;
         plus <br/>
<a id="pl.97.17"></a><var>97.17</var>(3) 169.415 times the jobs per capita; plus (4) the sparsity adjustment; plus (5)
         307.664.<br/>
<a id="pl.97.18"></a><var>97.18</var>    (b) For a city with a population equal to or greater than 2,500 and less than 10,000,
         "city <br/>
<a id="pl.97.19"></a><var>97.19</var>revenue need" is 1.15 times the sum of (1) 572.62; plus (2) 5.026 times the pre-1940
         housing <br/>
<a id="pl.97.20"></a><var>97.20</var>percentage; minus (3) 53.768 times household size; plus (4) 14.022 times peak population
         <br/>
<a id="pl.97.21"></a><var>97.21</var>decline; plus (5) the sparsity adjustment.<br/>
<a id="pl.97.22"></a><var>97.22</var>    (c) For a city with a population less than 2,500, "city revenue need" is the sum of (1)  <br/>
<a id="pl.97.23"></a><var>97.23</var>410 plus; (2) 0.367 times the city's population over 100; plus (3) the sparsity adjustment. <br/>
<a id="pl.97.24"></a><var>97.24</var>The city revenue need for a city under this paragraph shall not exceed 630 plus the city's <br/>
<a id="pl.97.25"></a><var>97.25</var>sparsity adjustment.<br/>
<a id="pl.97.26"></a><var>97.26</var>    (d) For a city with a population of at least 2,500 but less than 3,000, the "city
         revenue <br/>
<a id="pl.97.27"></a><var>97.27</var>need" equals (1) the transition factor times the city's revenue need calculated in
         paragraph <br/>
<a id="pl.97.28"></a><var>97.28</var>(b); plus (2) 630 times the difference between one and the transition factor. For
         a city with <br/>
<a id="pl.97.29"></a><var>97.29</var>a population of at least 10,000 but less than 10,500, the "city revenue need" equals
         (1) the <br/>
<a id="pl.97.30"></a><var>97.30</var>transition factor times the city's revenue need calculated in paragraph (a); plus
         (2) the city's <br/>
<a id="pl.97.31"></a><var>97.31</var>revenue need calculated under the formula in paragraph (b) times the difference between
         <br/>
<a id="pl.97.32"></a><var>97.32</var>one and the transition factor. For purposes of this paragraph "transition factor"
         is 0.2 percent <br/>
<a id="pl.98.1"></a><var>98.1</var>times the amount that the city's population exceeds the minimum threshold in either
         of the <br/>
<a id="pl.98.2"></a><var>98.2</var>first two sentences.<br/>
<a id="pl.98.3"></a><var>98.3</var>    (e) The city revenue need cannot be less than zero.<br/>
<a id="pl.98.4"></a><var>98.4</var>    (f) For calendar year 2015 and subsequent years, the city revenue need for a city,
         as <br/>
<a id="pl.98.5"></a><var>98.5</var>determined in paragraphs (a) to (e), is multiplied by the ratio of the annual implicit
         price <br/>
<a id="pl.98.6"></a><var>98.6</var>deflator for government consumption expenditures and gross investment for state and
         local <br/>
<a id="pl.98.7"></a><var>98.7</var>governments as prepared by the United States Department of Commerce, for the most
         <br/>
<a id="pl.98.8"></a><var>98.8</var>recently available year to the 2013 implicit price deflator for state and local government
         <br/>
<a id="pl.98.9"></a><var>98.9</var>purchases.<br/>
<a id="pl.98.10"></a><var>98.10</var><b>EFFECTIVE DATE.</b>This section is effective for aids payable in calendar year 2018 <br/>
<a id="pl.98.11"></a><var>98.11</var>and thereafter.<br/>
<br/>
<a id="bill.3.14.0"></a><a id="pl.98.12"></a><var>98.12</var>    Sec. 14. Minnesota Statutes 2016, section 477A.011, subdivision 45, is amended to read:<br/>
<a id="pl.98.13"></a><var>98.13</var>    Subd. 45. <b>Sparsity adjustment.</b> For a city with a population of 10,000 or more, the <br/>
<a id="pl.98.14"></a><var>98.14</var>sparsity adjustment is 100 for any city with an average population density less than
         150 per <br/>
<a id="pl.98.15"></a><var>98.15</var>square mile, according to the most recent federal census, and. For a city with a population <br/>
<a id="pl.98.16"></a><var>98.16</var>less than 10,000, the sparsity adjustment is 200 for any city with an average population
         <br/>
<a id="pl.98.17"></a><var>98.17</var>density less than 30 per square mile, according to the most recent federal census. The sparsity <br/>
<a id="pl.98.18"></a><var>98.18</var>adjustment is zero for all other cities.<br/>
<a id="pl.98.19"></a><var>98.19</var><b>EFFECTIVE DATE.</b>This section is effective for aids payable in calendar year 2018 <br/>
<a id="pl.98.20"></a><var>98.20</var>and thereafter.<br/>
<br/>
<a id="bill.3.15.0"></a><a id="pl.98.21"></a><var>98.21</var>    Sec. 15. Minnesota Statutes 2016, section 477A.013, subdivision 8, is amended to read:<br/>
<a id="pl.98.22"></a><var>98.22</var>    Subd. 8. <b>City formula aid.</b> (a) For aids payable in 2015 2018 and thereafter, the formula <br/>
<a id="pl.98.23"></a><var>98.23</var>aid for a city is equal to the sum of (1) its formula aid in the previous year and (2) the product <br/>
<a id="pl.98.24"></a><var>98.24</var>of (i) the difference between its unmet need and its formula certified aid in the previous <br/>
<a id="pl.98.25"></a><var>98.25</var>year before any aid adjustment under subdivision 13, and (ii) the aid gap percentage.<br/>
<a id="pl.98.26"></a><var>98.26</var>    (b) For aids payable in 2015 and thereafter, if a city's certified aid from the previous
         <br/>
<a id="pl.98.27"></a><var>98.27</var>year is greater than the sum of its unmet need plus its aid adjustment under subdivision
         13, <br/>
<a id="pl.98.28"></a><var>98.28</var>its formula aid is adjusted to equal its unmet need.<br/>
<a id="pl.98.29"></a><var>98.29</var>    (c) (b) No city may have a formula aid amount less than zero. The aid gap percentage <br/>
<a id="pl.98.30"></a><var>98.30</var>must be the same for all cities subject to paragraph (a).<br/>
<a id="pl.99.1"></a><var>99.1</var>    (d) (c) The applicable aid gap percentage must be calculated by the Department of <br/>
<a id="pl.99.2"></a><var>99.2</var>Revenue so that the total of the aid under subdivision 9 equals the total amount available
         <br/>
<a id="pl.99.3"></a><var>99.3</var>for aid under section 
         <statute_ref>477A.03</statute_ref>. The aid gap percentage must be the same for all cities subject <br/>
<a id="pl.99.4"></a><var>99.4</var>to paragraph (a). Data used in calculating aids to cities under sections 
         <statute_ref>477A.011</statute_ref> to 
         <statute_ref>477A.013</statute_ref> <br/>
<a id="pl.99.5"></a><var>99.5</var>shall be the most recently available data as of January 1 in the year in which the
         aid is <br/>
<a id="pl.99.6"></a><var>99.6</var>calculated.<br/>
<a id="pl.99.7"></a><var>99.7</var><b>EFFECTIVE DATE.</b>This section is effective for aids payable in calendar year 2018 <br/>
<a id="pl.99.8"></a><var>99.8</var>and thereafter.<br/>
<br/>
<a id="bill.3.16.0"></a><a id="pl.99.9"></a><var>99.9</var>    Sec. 16. Minnesota Statutes 2016, section 477A.013, subdivision 9, is amended to read:<br/>
<a id="pl.99.10"></a><var>99.10</var>    Subd. 9. <b>City aid distribution.</b> (a) In calendar year 2014 2018 and thereafter, each city <br/>
<a id="pl.99.11"></a><var>99.11</var>if a city's certified aid before any aid adjustment under subdivision 13 for the previous
         year <br/>
<a id="pl.99.12"></a><var>99.12</var>is less than its current unmet need, the city shall receive an aid distribution equal to the sum <br/>
<a id="pl.99.13"></a><var>99.13</var>of (1) its certified aid in the previous year before any aid adjustment under subdivision
         13, <br/>
<a id="pl.99.14"></a><var>99.14</var>(2) the city formula aid under subdivision 8, and (2) (3) its aid adjustment under subdivision <br/>
<a id="pl.99.15"></a><var>99.15</var>13.<br/>
<a id="pl.99.16"></a><var>99.16</var>    (b) For aids payable in 2015 2018 and thereafter, if a city's certified aid before any aid <br/>
<a id="pl.99.17"></a><var>99.17</var>adjustment under subdivision 13 for the previous year is equal to or greater than
         its current <br/>
<a id="pl.99.18"></a><var>99.18</var>unmet need, the total aid for a city must not be less than is equal to the greater of (1) its <br/>
<a id="pl.99.19"></a><var>99.19</var>unmet need plus any aid adjustment under subdivision 13, or (2) the amount it was certified <br/>
<a id="pl.99.20"></a><var>99.20</var>to receive in the previous year minus the lesser of $10 multiplied by its population,
         or five <br/>
<a id="pl.99.21"></a><var>99.21</var>percent of its net levy in the year prior to the aid distribution. No city may have a total aid <br/>
<a id="pl.99.22"></a><var>99.22</var>amount less than zero.<br/>
<a id="pl.99.23"></a><var>99.23</var><b>EFFECTIVE DATE.</b>This section is effective for aids payable in calendar year 2018 <br/>
<a id="pl.99.24"></a><var>99.24</var>and thereafter.<br/>
<br/>
<a id="bill.3.17.0"></a><a id="pl.99.25"></a><var>99.25</var>    Sec. 17. <b>[477A.0135] AID REDUCTIONS FOR PAYMENTS TO A WORLD FAIR </b><br/>
<a id="pl.99.26"></a><var>99.26</var><b>OR EXPO.</b><br/>
<a id="pl.99.27"></a><var>99.27</var>If a county, statutory or home rule charter city, or town makes a payment or contribution
         <br/>
<a id="pl.99.28"></a><var>99.28</var>to Expo2023 or any similar organization with the mission of advocating, promoting,
         or <br/>
<a id="pl.99.29"></a><var>99.29</var>running a world fair or expo in the state of Minnesota in any year, it must report
         that amount <br/>
<a id="pl.99.30"></a><var>99.30</var>to the commissioner by January 15 of the year following the year in which the payment
         or <br/>
<a id="pl.99.31"></a><var>99.31</var>contribution is made. The commissioner shall reduce the aid paid to a county, city,
         or town <br/>
<a id="pl.99.32"></a><var>99.32</var>under section 477A.014 from the amount certified to the county under section 477A.0124;
         <br/>
<a id="pl.99.33"></a><var>99.33</var>to the city under section 477A.013, subdivision 9; or to the town under section 477A.013,
         <br/>
<a id="pl.100.1"></a><var>100.1</var>subdivision 1, in the calendar year following the year in which the payment or contribution
         <br/>
<a id="pl.100.2"></a><var>100.2</var>was made. The reduction is equal to the amount of the payment or contribution, but
         the aid <br/>
<a id="pl.100.3"></a><var>100.3</var>paid to any county, city, or town may not be less than zero. Any savings in aid payments
         <br/>
<a id="pl.100.4"></a><var>100.4</var>under this section shall stay in the general fund and shall not be redistributed to
         other <br/>
<a id="pl.100.5"></a><var>100.5</var>counties, cities, or towns.<br/>
<a id="pl.100.6"></a><var>100.6</var><b>EFFECTIVE DATE.</b>This section is effective for aids payable in calendar year 2018 <br/>
<a id="pl.100.7"></a><var>100.7</var>and thereafter.<br/>
<br/>
<a id="bill.3.18.0"></a><a id="pl.100.8"></a><var>100.8</var>    Sec. 18. <b>[477A.0175] AID REDUCTIONS FOR OPERATING AN UNAUTHORIZED </b><br/>
<a id="pl.100.9"></a><var>100.9</var><b>DIVERSION PROGRAM.</b><br/>
<a id="pl.100.10"></a><var>100.10</var>    Subdivision 1. <b>Penalty for operating an unauthorized diversion program.</b><br/>
<a id="pl.100.11"></a><var>100.11</var>Notwithstanding any other law to the contrary, a county or city that operated a pretrial
         <br/>
<a id="pl.100.12"></a><var>100.12</var>diversion program that a court determines was not authorized under section 169.999
         or <br/>
<a id="pl.100.13"></a><var>100.13</var>another statute or law must have its aid under sections 477A.011 to 477A.03 reduced
         by <br/>
<a id="pl.100.14"></a><var>100.14</var>the amount of fees paid by participants into the program for the years in which the
         program <br/>
<a id="pl.100.15"></a><var>100.15</var>operated. A court shall report any order that enjoins a county or city from operating
         a pretrial <br/>
<a id="pl.100.16"></a><var>100.16</var>diversion program to the commissioner as required under subdivision 2. The commissioner
         <br/>
<a id="pl.100.17"></a><var>100.17</var>shall, with the assistance of the state auditor, determine the amount of fees collected
         under <br/>
<a id="pl.100.18"></a><var>100.18</var>the diversion program and reduce the county program aid paid to a county or the local
         <br/>
<a id="pl.100.19"></a><var>100.19</var>government aid paid to a city by this amount beginning with the first aid payment
         made <br/>
<a id="pl.100.20"></a><var>100.20</var>after the reduction amount is determined. No aid payment may be less than zero but
         the <br/>
<a id="pl.100.21"></a><var>100.21</var>amount of the reduction that cannot be made out of that payment shall be applied to
         future <br/>
<a id="pl.100.22"></a><var>100.22</var>payments until the total amount has been deducted.<br/>
<a id="pl.100.23"></a><var>100.23</var>    Subd. 2. <b>Court challenge to authority to operate a pretrial diversion program.</b> Any <br/>
<a id="pl.100.24"></a><var>100.24</var>taxpayer may challenge a city or county operation of a pretrial diversion program
         by filing <br/>
<a id="pl.100.25"></a><var>100.25</var>a declaratory judgment action or seeking other appropriate relief in the district
         court for the <br/>
<a id="pl.100.26"></a><var>100.26</var>county where the city is located or in any other court of competent jurisdiction.
         If the court <br/>
<a id="pl.100.27"></a><var>100.27</var>finds that the county or city has exceeded its authority under law in operating the
         pretrial <br/>
<a id="pl.100.28"></a><var>100.28</var>diversion program, the court must transmit a copy of the court order to the commissioner
         <br/>
<a id="pl.100.29"></a><var>100.29</var>of revenue.<br/>
<a id="pl.100.30"></a><var>100.30</var><b>EFFECTIVE DATE.</b>This section is effective the day following final enactment and <br/>
<a id="pl.100.31"></a><var>100.31</var>applies beginning with the second aid payments under Minnesota Statutes, section 477A.015
         <br/>
<a id="pl.100.32"></a><var>100.32</var>in calendar year 2017.<br/>
<br/>
<a id="bill.3.19.0"></a><a id="pl.101.1"></a><var>101.1</var>    Sec. 19. <b>ONETIME ADJUSTMENT FOR CERTAIN CITIES; AIDS PAYABLE IN </b><br/>
<a id="pl.101.2"></a><var>101.2</var><b>2017.</b><br/>
<a id="pl.101.3"></a><var>101.3</var>(a) The amount of aid payable in 2017 to a city shall be increased to equal the amount
         <br/>
<a id="pl.101.4"></a><var>101.4</var>of aid it received under Minnesota Statutes, section 477A.013, subdivision 9, for
         aids payable <br/>
<a id="pl.101.5"></a><var>101.5</var>in 2016 if the following conditions are met:<br/>
<a id="pl.101.6"></a><var>101.6</var>(1) its certified aid under Minnesota Statutes, section 477A.013, subdivision 9, for
         aids <br/>
<a id="pl.101.7"></a><var>101.7</var>payable in 2017, is less than its certified aid for aids payable in 2016; and<br/>
<a id="pl.101.8"></a><var>101.8</var>(2) its certified aid under Minnesota Statutes, section 477A.013, subdivision 9, for
         aids <br/>
<a id="pl.101.9"></a><var>101.9</var>payable in 2016, is less than its unmet need under Minnesota Statutes, section 477A.011,
         <br/>
<a id="pl.101.10"></a><var>101.10</var>subdivision 34, for aids payable in 2017.<br/>
<a id="pl.101.11"></a><var>101.11</var>(b) Any adjustment under this section shall be treated as an aid correction under
         <br/>
<a id="pl.101.12"></a><var>101.12</var>Minnesota Statutes, section 477A.014, subdivision 3. The amount computed under this
         <br/>
<a id="pl.101.13"></a><var>101.13</var>section shall be used as an affected city's 2017 certified aid amount when calculating
         its <br/>
<a id="pl.101.14"></a><var>101.14</var>formula aid under Minnesota Statutes, section 477A.013, subdivision 8, for aids payable
         in <br/>
<a id="pl.101.15"></a><var>101.15</var>2018.<br/>
<a id="pl.101.16"></a><var>101.16</var><b>EFFECTIVE DATE.</b>This section is effective for aids payable in calendar years 2017 <br/>
<a id="pl.101.17"></a><var>101.17</var>and 2018.<br/>
<br/>
<a id="bill.3.20.0"></a><a id="pl.101.18"></a><var>101.18</var>    Sec. 20. <b>BASE YEAR FORMULA AID FOR NEWLY INCORPORATED CITY.</b><br/>
<a id="pl.101.19"></a><var>101.19</var>For a city that incorporated on October 13, 2015, and first qualifies for aid under
         <br/>
<a id="pl.101.20"></a><var>101.20</var>Minnesota Statutes, section 477A.013, subdivisions 8 and 9, in 2017, the city's certified
         aid <br/>
<a id="pl.101.21"></a><var>101.21</var>for 2017, used in calculating aid payable in 2018, shall be deemed to equal the lesser
         of (1) <br/>
<a id="pl.101.22"></a><var>101.22</var>25 percent of its certified levy for taxes payable in 2016, or (2) 50 percent of its
         unmet need <br/>
<a id="pl.101.23"></a><var>101.23</var>as defined in Minnesota Statutes, section 477A.011, subdivision 43.<br/>
<a id="pl.101.24"></a><var>101.24</var><b>EFFECTIVE DATE.</b>This section is effective for aids payable in 2018.<br/>
<br/>
<a id="bill.3.21.0"></a><a id="pl.101.25"></a><var>101.25</var>    Sec. 21. <b>2013 CITY AID PENALTY FORGIVENESS; CITY OF OSLO.</b><br/>
<a id="pl.101.26"></a><var>101.26</var>Notwithstanding Minnesota Statutes, section 477A.017, subdivision 3, the city of Oslo
         <br/>
<a id="pl.101.27"></a><var>101.27</var>shall receive the portion of its aid payment for calendar year 2013 under Minnesota
         Statutes, <br/>
<a id="pl.101.28"></a><var>101.28</var>section 477A.013, that was withheld under Minnesota Statutes, section 477A.017, subdivision
         <br/>
<a id="pl.101.29"></a><var>101.29</var>3, provided that the state auditor certifies to the commissioner of revenue that it
         received <br/>
<a id="pl.101.30"></a><var>101.30</var>audited financial statements from the city for calendar year 2012 by December 31,
         2013. <br/>
<a id="pl.101.31"></a><var>101.31</var>The commissioner of revenue shall make a payment of $37,473.50 with the first payment
         <br/>
<a id="pl.102.1"></a><var>102.1</var>of aids under Minnesota Statutes, section 477A.015. $37,473.50 is appropriated from
         the <br/>
<a id="pl.102.2"></a><var>102.2</var>general fund to the commissioner of revenue in fiscal year 2018 to make this payment.<br/>
<a id="pl.102.3"></a><var>102.3</var><b>EFFECTIVE DATE.</b>This section is effective the day following final enactment.<br/>
<br/>
<a id="bill.3.22.0"></a><a id="pl.102.4"></a><var>102.4</var>    Sec. 22. <b>2014 AID PENALTY FORGIVENESS.</b><br/>
<a id="pl.102.5"></a><var>102.5</var>(a) Notwithstanding Minnesota Statutes, section 477A.017, subdivision 3, the cities
         of <br/>
<a id="pl.102.6"></a><var>102.6</var>Dundee, Jeffers, and Woodstock shall receive all of their calendar year 2014 aid payment
         <br/>
<a id="pl.102.7"></a><var>102.7</var>that was withheld under Minnesota Statutes, section 477A.017, subdivision 3, provided
         that <br/>
<a id="pl.102.8"></a><var>102.8</var>the state auditor certifies to the commissioner of revenue that the city complied
         with all <br/>
<a id="pl.102.9"></a><var>102.9</var>reporting requirements under Minnesota Statutes, section 477A.017, subdivision 3,
         for <br/>
<a id="pl.102.10"></a><var>102.10</var>calendar years 2013 and 2014 by June 1, 2015.<br/>
<a id="pl.102.11"></a><var>102.11</var>(b) The commissioner of revenue shall make payment to each city no later than July
         20, <br/>
<a id="pl.102.12"></a><var>102.12</var>2017. Up to $101,570 in fiscal year 2018 is appropriated from the general fund to
         the <br/>
<a id="pl.102.13"></a><var>102.13</var>commissioner of revenue to make the payments under this section.<br/>
<a id="pl.102.14"></a><var>102.14</var><b>EFFECTIVE DATE.</b>This section is effective the day following final enactment.<br/>
<br/>
<a id="bill.3.23.0"></a><a id="pl.102.15"></a><var>102.15</var>    Sec. 23. <b>LAKE MILLE LACS AREA PROPERTY TAX ABATEMENT.</b><br/>
<a id="pl.102.16"></a><var>102.16</var>    Subdivision 1. <b>Abatements authorized.</b> (a) Notwithstanding Minnesota Statutes, section <br/>
<a id="pl.102.17"></a><var>102.17</var>375.192, the county boards of Aitkin, Crow Wing, and Mille Lacs Counties may grant
         an <br/>
<a id="pl.102.18"></a><var>102.18</var>abatement of local property taxes for taxes payable in 2017, provided that:<br/>
<a id="pl.102.19"></a><var>102.19</var>(1) the property is classified as 1c, 3a (excluding utility real and personal property),
         <br/>
<a id="pl.102.20"></a><var>102.20</var>4c(1), 4c(10), or 4c(11);<br/>
<a id="pl.102.21"></a><var>102.21</var>(2) on or before December 31, 2017, the taxpayer submits a written application to
         the <br/>
<a id="pl.102.22"></a><var>102.22</var>county auditor in the county in which abatement is sought; and<br/>
<a id="pl.102.23"></a><var>102.23</var>(3) the taxpayer meets qualification requirements established in subdivision 3.<br/>
<a id="pl.102.24"></a><var>102.24</var>    Subd. 2. <b>Appeals.</b> An appeal may not be taken to the Tax Court from any order of the <br/>
<a id="pl.102.25"></a><var>102.25</var>county board made pursuant to the exercise of the discretionary authority granted
         in this <br/>
<a id="pl.102.26"></a><var>102.26</var>section.<br/>
<a id="pl.102.27"></a><var>102.27</var>    Subd. 3. <b>Qualification requirements.</b> To qualify for abatements under this section, a <br/>
<a id="pl.102.28"></a><var>102.28</var>taxpayer must:<br/>
<a id="pl.102.29"></a><var>102.29</var>(1) be located within one of the following municipalities surrounding Lake Mille Lacs:<br/>
<a id="pl.103.1"></a><var>103.1</var>(i) in Crow Wing County, the city of Garrison, township of Garrison, or township of
         <br/>
<a id="pl.103.2"></a><var>103.2</var>Roosevelt;<br/>
<a id="pl.103.3"></a><var>103.3</var>(ii) in Aitkin County, the township of Hazelton, township of Wealthwood, township
         of <br/>
<a id="pl.103.4"></a><var>103.4</var>Malmo, or township of Lakeside; or<br/>
<a id="pl.103.5"></a><var>103.5</var>(iii) in Mille Lacs County, the city of Isle, city of Wahkon, city of Onamia, township
         of <br/>
<a id="pl.103.6"></a><var>103.6</var>East Side, township of Isle Harbor, township of South Harbor, or township of Kathio;<br/>
<a id="pl.103.7"></a><var>103.7</var>(2) document a reduction in gross receipts of five percent or greater between two
         <br/>
<a id="pl.103.8"></a><var>103.8</var>successive calendar years beginning in 2010 or later; and<br/>
<a id="pl.103.9"></a><var>103.9</var>(3) be a business in one of the following industries, as defined within the North
         American <br/>
<a id="pl.103.10"></a><var>103.10</var>Industry Classification System: accommodation, restaurants, bars, amusement and recreation,
         <br/>
<a id="pl.103.11"></a><var>103.11</var>food and beverages retail, sporting goods, miscellaneous retail, general retail, museums,
         <br/>
<a id="pl.103.12"></a><var>103.12</var>historical sites, health and personal care, gas station, general merchandise, business
         and <br/>
<a id="pl.103.13"></a><var>103.13</var>professional membership, movies, or nonstore retailer, as determined by the county
         in <br/>
<a id="pl.103.14"></a><var>103.14</var>consultation with the commissioner of employment and economic development.<br/>
<a id="pl.103.15"></a><var>103.15</var>    Subd. 4. <b>State general levy in relief area.</b> The counties of Aitkin, Crow Wing, and <br/>
<a id="pl.103.16"></a><var>103.16</var>Mille Lacs must refund the state general levy levied upon a property classified as
         1c, 3a <br/>
<a id="pl.103.17"></a><var>103.17</var>(excluding utility real and personal property), or 4c(1) that is located in the area
         described <br/>
<a id="pl.103.18"></a><var>103.18</var>by subdivision 3, clause (1), for taxes payable in 2017.<br/>
<a id="pl.103.19"></a><var>103.19</var>    Subd. 5. <b>Certification and transfer of funds.</b> (a) By February 1, 2018, a county granting <br/>
<a id="pl.103.20"></a><var>103.20</var>a refund as required under subdivision 4 must certify the total amount of state general
         tax <br/>
<a id="pl.103.21"></a><var>103.21</var>refunded to Mille Lacs County and the commissioner of revenue. By March 1, 2018, Mille
         <br/>
<a id="pl.103.22"></a><var>103.22</var>Lacs County must transfer an amount equal to the amount certified under this paragraph
         to <br/>
<a id="pl.103.23"></a><var>103.23</var>the county making the certification.<br/>
<a id="pl.103.24"></a><var>103.24</var>(b) By February 1, 2018, a county that has received an application for an abatement
         <br/>
<a id="pl.103.25"></a><var>103.25</var>authorized under subdivision 1 must certify to Mille Lacs County the total amount
         of <br/>
<a id="pl.103.26"></a><var>103.26</var>abatements for which applications have been received and approved. By March 1, 2018,
         <br/>
<a id="pl.103.27"></a><var>103.27</var>Mille Lacs County must transfer an amount equal to the amount certified under this
         paragraph <br/>
<a id="pl.103.28"></a><var>103.28</var>to the county making the certification. By April 30, 2018, the county must issue refunds
         of <br/>
<a id="pl.103.29"></a><var>103.29</var>local property tax amounts to qualified taxpayers.<br/>
<a id="pl.103.30"></a><var>103.30</var>    Subd. 6. <b>Commissioner of revenue; appropriation.</b> An amount sufficient to make the <br/>
<a id="pl.103.31"></a><var>103.31</var>transfers required under subdivision 5 in fiscal year 2018 is appropriated from the
         general <br/>
<a id="pl.103.32"></a><var>103.32</var>fund to the commissioner of revenue for transfer to Mille Lacs County. This is a onetime
         <br/>
<a id="pl.103.33"></a><var>103.33</var>appropriation.<br/>
<a id="pl.104.1"></a><var>104.1</var>    Subd. 7. <b>Report to legislature.</b> The commissioner of revenue must make a written report <br/>
<a id="pl.104.2"></a><var>104.2</var>to the chairs and ranking minority members of the legislative committees with jurisdiction
         <br/>
<a id="pl.104.3"></a><var>104.3</var>over taxes stating the amount of abatements and refunds given under this section by
         taxing <br/>
<a id="pl.104.4"></a><var>104.4</var>jurisdictions by February 1, 2019. The counties must provide the commissioner with
         the <br/>
<a id="pl.104.5"></a><var>104.5</var>information necessary to make the report.<br/>
<a id="pl.104.6"></a><var>104.6</var>    Subd. 8. <b>Refund eligibility.</b> Only a taxpayer making all payments of property taxes for <br/>
<a id="pl.104.7"></a><var>104.7</var>taxes payable in 2017 is eligible to receive a refund under subdivisions 4 and 5.<br/>
<a id="pl.104.8"></a><var>104.8</var><b>EFFECTIVE DATE.</b>This section is effective the day following final enactment.<br/>
<br/>
<a id="bill.3.24.0"></a><a id="pl.104.9"></a><var>104.9</var>    Sec. 24. <b>SUPPLEMENTAL PAYMENTS FOR OTHER  NATURAL RESOURCES </b><br/>
<a id="pl.104.10"></a><var>104.10</var><b>LAND.</b><br/>
<a id="pl.104.11"></a><var>104.11</var>    Subdivision 1. <b>Supplemental payments.</b> For aids payable in calendar years 2017 and <br/>
<a id="pl.104.12"></a><var>104.12</var>2018 only, each county must receive a supplemental aid payment equal to 50 cents per
         acre <br/>
<a id="pl.104.13"></a><var>104.13</var>for other natural resources land, as defined in Minnesota Statutes, section 477A.11,
         <br/>
<a id="pl.104.14"></a><var>104.14</var>subdivision 4, located in the county. The payment shall be made at the same time as
         payments <br/>
<a id="pl.104.15"></a><var>104.15</var>under Minnesota Statutes, section 477A.13, and the counties shall distribute this
         payment <br/>
<a id="pl.104.16"></a><var>104.16</var>as if it was part of the aids subject to the general distribution for that year under
         Minnesota <br/>
<a id="pl.104.17"></a><var>104.17</var>Statutes, section 477A.014, subdivision 1.<br/>
<a id="pl.104.18"></a><var>104.18</var>    Subd. 2. <b>Appropriation.</b> The amount necessary to make the payments under subdivision <br/>
<a id="pl.104.19"></a><var>104.19</var>1 in each year is appropriated from the general fund to the commissioner of revenue
         for <br/>
<a id="pl.104.20"></a><var>104.20</var>fiscal years 2018 and 2019 only. The appropriations under this section are onetime
         and not <br/>
<a id="pl.104.21"></a><var>104.21</var>added to the base budget.<br/>
<a id="pl.104.22"></a><var>104.22</var><b>EFFECTIVE DATE.</b>This section is effective for aids payable in calendar years 2017 <br/>
<a id="pl.104.23"></a><var>104.23</var>and 2018 only.<br/>
<br/>
<a id="bill.3.25.0"></a><a id="pl.104.24"></a><var>104.24</var>    Sec. 25. <b>2017 HOMESTEAD CREDIT REFUND.</b><br/>
<a id="pl.104.25"></a><var>104.25</var>(a) By October 1, 2017, the commissioner of revenue shall adjust the schedule for
         the <br/>
<a id="pl.104.26"></a><var>104.26</var>homestead credit refund allowed under Minnesota Statutes, section 290A.04, subdivision
         <br/>
<a id="pl.104.27"></a><var>104.27</var>2, so as to increase the total amount of refunds based on taxes payable in 2018. The
         <br/>
<a id="pl.104.28"></a><var>104.28</var>commissioner must adjust the schedule by proportionately decreasing the percent of
         tax <br/>
<a id="pl.104.29"></a><var>104.29</var>above the income threshold paid by the claimant, or the "co-payment percentage," for
         each <br/>
<a id="pl.104.30"></a><var>104.30</var>income bracket in the schedule so that the increase in refunds projected to be paid
         based on <br/>
<a id="pl.104.31"></a><var>104.31</var>taxes payable in 2018 equals $58,000,000.<br/>
<a id="pl.105.1"></a><var>105.1</var>(b) The amount necessary to pay the additional amounts required under this section
         is <br/>
<a id="pl.105.2"></a><var>105.2</var>appropriated from the general fund to the commissioner of revenue in fiscal year 2019.<br/>
<a id="pl.105.3"></a><var>105.3</var><b>EFFECTIVE DATE.</b>This section is effective for refunds based on taxes payable in <br/>
<a id="pl.105.4"></a><var>105.4</var>2018 only.<br/>
<br/>
<a id="bill.3.26.0"></a><a id="pl.105.5"></a><var>105.5</var>    Sec. 26. <b>2017 RENTER PROPERTY TAX REFUND.</b><br/>
<a id="pl.105.6"></a><var>105.6</var>(a) By October 1, 2017, the commissioner of revenue shall adjust the schedule for
         the <br/>
<a id="pl.105.7"></a><var>105.7</var>property tax refund for renters allowed under Minnesota Statutes, section 290A.04,
         <br/>
<a id="pl.105.8"></a><var>105.8</var>subdivision 2a, so as to increase the total amount of refunds based on taxes payable
         in 2018. <br/>
<a id="pl.105.9"></a><var>105.9</var>The commissioner must adjust the schedule by:<br/>
<a id="pl.105.10"></a><var>105.10</var>(1) first proportionately decreasing the percent of income, or the "threshold percentage,"
         <br/>
<a id="pl.105.11"></a><var>105.11</var>for each income bracket in the schedule so that the increase in refunds projected
         to be paid <br/>
<a id="pl.105.12"></a><var>105.12</var>based on rent paid in 2017 equals $21,000,000; and<br/>
 <a id="pl.105.13"></a><var>105.13</var>(2) second proportionately decreasing the percent of tax above the income threshold
         <br/>
<a id="pl.105.14"></a><var>105.14</var>paid by the claimant, or the "co-payment percentage," for each income bracket in the
         schedule <br/>
<a id="pl.105.15"></a><var>105.15</var>so that the total increase in refunds projected to be paid based on rent paid in 2017
         under <br/>
<a id="pl.105.16"></a><var>105.16</var>this clause and clause (1) equals $42,000,000.<br/>
<a id="pl.105.17"></a><var>105.17</var>(b) The amount necessary to pay the additional amounts required under this section
         is <br/>
<a id="pl.105.18"></a><var>105.18</var>appropriated from the general fund to the commissioner of revenue in fiscal year 2019.<br/>
<a id="pl.105.19"></a><var>105.19</var><b>EFFECTIVE DATE.</b>This section is effective for refunds based on rent paid in 2017 <br/>
<a id="pl.105.20"></a><var>105.20</var>only.<br/>
<br/>
<a id="bill.3.27.0"></a><a id="pl.105.21"></a><var>105.21</var>    Sec. 27. <b> REPEALER.</b><br/>
<a id="pl.105.22"></a><var>105.22</var>Minnesota Statutes 2016, section 477A.085, is repealed.<br/>
<a id="pl.105.23"></a><var>105.23</var><b>EFFECTIVE DATE.</b>This section is effective beginning with aids payable in 2018.<br/>
<br/>
<a id="bill.4.0.0"></a>

<a id="bill.4.1.0"></a><a id="pl.105.26"></a><var>105.26</var>    Section 1. <b>[11A.237] ACCOUNT FOR COUNTY JOINT TRUST FUND PAYMENTS.</b><br/>
<a id="pl.105.27"></a><var>105.27</var>    Subdivision 1. <b>Establishment.</b> The State Board of Investment, when requested by a <br/>
<a id="pl.105.28"></a><var>105.28</var>county as required under sections 97A.056, subdivision 1b, and 116P.045, subdivision
         2, <br/>
<a id="pl.105.29"></a><var>105.29</var>shall invest the funds deposited by the commissioner of revenue, acting as an agent
         on the <br/>
<a id="pl.105.30"></a><var>105.30</var>board's behalf, under section 97A.056, subdivision 1b, or 116P.045, subdivision 2,
         in a <br/>
<a id="pl.106.1"></a><var>106.1</var>special account for that purpose in the combined investment funds established in section
         <br/>
<a id="pl.106.2"></a><var>106.2</var>11A.14, subject to the policy and procedures of the State Board of Investment. Use
         of the <br/>
<a id="pl.106.3"></a><var>106.3</var>funds is restricted to payments to the commissioner of revenue, acting as an agent
         on behalf <br/>
<a id="pl.106.4"></a><var>106.4</var>of the counties, for distributions to counties under sections 97A.056, subdivision
         1b, and <br/>
<a id="pl.106.5"></a><var>106.5</var>116P.045, subdivision 2.<br/>
<a id="pl.106.6"></a><var>106.6</var>    Subd. 2. <b>Account maintenance and investment.</b> The commissioner of revenue may <br/>
<a id="pl.106.7"></a><var>106.7</var>deposit money into the account on behalf of the counties and may withdraw money from
         <br/>
<a id="pl.106.8"></a><var>106.8</var>the account to make distributions to the counties under sections 97A.056, subdivision
         1b, <br/>
<a id="pl.106.9"></a><var>106.9</var>and 116P.045, subdivision 2, only. The commissioner of revenue shall make one payment
         <br/>
<a id="pl.106.10"></a><var>106.10</var>under each section each year for all counties eligible for a payment in that year.
         The <br/>
<a id="pl.106.11"></a><var>106.11</var>commissioner shall make one withdrawal annually at a time negotiated with the executive
         <br/>
<a id="pl.106.12"></a><var>106.12</var>director of the State Board of Investment, but no later than November 15, to cover
         <br/>
<a id="pl.106.13"></a><var>106.13</var>distributions to counties under section 477A.30, up to the limit allowed under that
         section. <br/>
<a id="pl.106.14"></a><var>106.14</var>The transactions must be in the manner required by the executive director of the State
         Board <br/>
<a id="pl.106.15"></a><var>106.15</var>of Investment. Investment earnings must be credited to the account.<br/>
<a id="pl.106.16"></a><var>106.16</var><b>EFFECTIVE DATE.</b>This section is effective January 1, 2018.<br/>
<br/>
<a id="bill.4.2.0"></a><a id="pl.106.17"></a><var>106.17</var>    Sec. 2. Minnesota Statutes 2016, section 97A.056, subdivision 1a, is amended to read:<br/>
<a id="pl.106.18"></a><var>106.18</var>    Subd. 1a. <b>Definitions.</b> For the purpose of (a) The definitions in this subdivision apply <br/>
<a id="pl.106.19"></a><var>106.19</var>to this section and appropriations from the outdoor heritage fund,.<br/>
<a id="pl.106.20"></a><var>106.20</var>(b) "Land acquisition costs" means acquisition coordination costs, costs of engineering
         <br/>
<a id="pl.106.21"></a><var>106.21</var>services, appraisal fees, attorney fees, taxes, assessments required at the time of
         purchase, <br/>
<a id="pl.106.22"></a><var>106.22</var>onetime trust fund payments under subdivision 1b, and recording fees.<br/>
<a id="pl.106.23"></a><var>106.23</var>(c) "Land-related property taxes" means property taxes collected on behalf of local
         <br/>
<a id="pl.106.24"></a><var>106.24</var>governments providing land-related services.<br/>
<a id="pl.106.25"></a><var>106.25</var>(d) "Local governments providing land-related services" means counties, townships,
         <br/>
<a id="pl.106.26"></a><var>106.26</var>home rule charter and statutory cities, watershed districts under chapter 103D, sanitary
         <br/>
<a id="pl.106.27"></a><var>106.27</var>districts under sections 442A.01 to 442A.29, and regional sanitary sewer districts
         under <br/>
<a id="pl.106.28"></a><var>106.28</var>sections 115.61 to 115.67.<br/>
<a id="pl.106.29"></a><var>106.29</var>(e) "Recipient" means the entity responsible for deliverables financed by the outdoor
         <br/>
<a id="pl.106.30"></a><var>106.30</var>heritage fund.<br/>
<a id="pl.106.31"></a><var>106.31</var>(f) "Total payment for the land" means the total price paid for the land including
         land <br/>
<a id="pl.106.32"></a><var>106.32</var>acquisition costs, but excluding any in-kind services provided by nongovernmental
         entities <br/>
<a id="pl.106.33"></a><var>106.33</var>at no cost to the state.<br/>
<a id="pl.107.1"></a><var>107.1</var><b>EFFECTIVE DATE.</b>This section is effective July 1, 2017.<br/>
<br/>
<a id="bill.4.3.0"></a><a id="pl.107.2"></a><var>107.2</var>    Sec. 3. Minnesota Statutes 2016, section 97A.056, is amended by adding a subdivision to <br/>
<a id="pl.107.3"></a><var>107.3</var>read:<br/>
<a id="pl.107.4"></a><var>107.4</var>    Subd. 1b. <b>Outdoor heritage trust fund payment account; trust fund payments.</b> (a) <br/>
<a id="pl.107.5"></a><var>107.5</var>An outdoor heritage trust fund account is created in the special revenue fund. The
         State <br/>
<a id="pl.107.6"></a><var>107.6</var>Board of Investment must ensure the account is invested under section 11A.24. The
         <br/>
<a id="pl.107.7"></a><var>107.7</var>commissioner of management and budget must credit to the account all money appropriated
         <br/>
<a id="pl.107.8"></a><var>107.8</var>to the account and all money earned by the account. The principal of the account and
         any <br/>
<a id="pl.107.9"></a><var>107.9</var>unexpended earnings must be invested and reinvested by the State Board of Investment.
         <br/>
<a id="pl.107.10"></a><var>107.10</var>Nothing in this section limits the source of contributions to the account. Money in
         the <br/>
<a id="pl.107.11"></a><var>107.11</var>account must be used only for the purposes of this subdivision.<br/>
<a id="pl.107.12"></a><var>107.12</var>(b) State land acquired in fee simple in whole or in part with money appropriated
         from <br/>
<a id="pl.107.13"></a><var>107.13</var>the outdoor heritage fund is eligible for a onetime trust fund payment as provided
         under <br/>
<a id="pl.107.14"></a><var>107.14</var>this subdivision. The percentage of the total acres acquired in any purchase that
         is eligible <br/>
<a id="pl.107.15"></a><var>107.15</var>for a trust fund payment under this subdivision is equal to the percentage of the
         total payment <br/>
<a id="pl.107.16"></a><var>107.16</var>for the land funded from outdoor heritage fund revenues. If the percentage of the
         total <br/>
<a id="pl.107.17"></a><var>107.17</var>payment for the land from the outdoor heritage fund is ten percent or less, the parcel
         is <br/>
<a id="pl.107.18"></a><var>107.18</var>ineligible for a payment under this subdivision; if the percentage is 90 percent or
         more, the <br/>
<a id="pl.107.19"></a><var>107.19</var>entire parcel is eligible for the payment under this subdivision. The commissioner
         of natural <br/>
<a id="pl.107.20"></a><var>107.20</var>resources must certify to the commissioner of revenue and the county in which land
         eligible <br/>
<a id="pl.107.21"></a><var>107.21</var>for a payment under this section is purchased the total number of acres purchased,
         the total <br/>
<a id="pl.107.22"></a><var>107.22</var>payment for the land, and the amount of outdoor heritage fund revenues used for the
         purchase. <br/>
<a id="pl.107.23"></a><var>107.23</var>The trust fund payment is equal to 30 times the land-related property taxes assessed
         on the <br/>
<a id="pl.107.24"></a><var>107.24</var>eligible portion of the land in the year prior to the year in which the land is acquired.
         If the <br/>
<a id="pl.107.25"></a><var>107.25</var>land was acquired from a private party that was exempt from paying property taxes,
         the <br/>
<a id="pl.107.26"></a><var>107.26</var>payments must be based on 30 times the property taxes assessed on comparable land
         in the <br/>
<a id="pl.107.27"></a><var>107.27</var>year prior to the year in which the land is acquired. By September 1 each year, the
         county <br/>
<a id="pl.107.28"></a><var>107.28</var>in which the land is acquired must provide the commissioner of revenue with information
         <br/>
<a id="pl.107.29"></a><var>107.29</var>necessary in a form determined by the commissioner of revenue to make this determination
         <br/>
<a id="pl.107.30"></a><var>107.30</var>for all lands acquired for the 12-month period ending on June 30 of that year. The
         <br/>
<a id="pl.107.31"></a><var>107.31</var>commissioner of revenue must make a trust fund payment on behalf of each county on
         the <br/>
<a id="pl.107.32"></a><var>107.32</var>same date as the first payment under section 273.1384, subdivision 4, each year for
         all land <br/>
<a id="pl.107.33"></a><var>107.33</var>acquired in that county in the 12-month period ending on June 30 of that year to the
         State <br/>
<a id="pl.107.34"></a><var>107.34</var>Board of Investment as required under this paragraph. The money so deposited is money
         <br/>
<a id="pl.107.35"></a><var>107.35</var>paid to the counties and may only be withdrawn for the purposes allowed under section
         <br/>
<a id="pl.108.1"></a><var>108.1</var>477A.30. The commissioner of revenue must inform each county by October 15 each year
         <br/>
<a id="pl.108.2"></a><var>108.2</var>of the amount deposited on the county's behalf with the State Board of Investment
         under <br/>
<a id="pl.108.3"></a><var>108.3</var>this subdivision.<br/>
<a id="pl.108.4"></a><var>108.4</var>(c) The amount necessary to make the payments required under this subdivision is <br/>
<a id="pl.108.5"></a><var>108.5</var>annually appropriated from the outdoor heritage trust fund payment account to the
         <br/>
<a id="pl.108.6"></a><var>108.6</var>commissioner of revenue for deposit in the account for county joint trust fund payments
         in <br/>
<a id="pl.108.7"></a><var>108.7</var>section 11A.237.<br/>
<a id="pl.108.8"></a><var>108.8</var>(d) To receive a trust fund payment under this subdivision, a county board must enter
         <br/>
<a id="pl.108.9"></a><var>108.9</var>into an agreement with the State Board of Investment to allow the commissioner of
         revenue <br/>
<a id="pl.108.10"></a><var>108.10</var>to make deposits and withdrawals on behalf of the county into and out of the county
         joint <br/>
<a id="pl.108.11"></a><var>108.11</var>trust fund account under section 11A.237.<br/>
<a id="pl.108.12"></a><var>108.12</var>(e) The portion of land receiving a trust fund payment under this subdivision is not
         <br/>
<a id="pl.108.13"></a><var>108.13</var>eligible for payments under sections 477A.11 to 477A.14, but is eligible for distribution
         of <br/>
<a id="pl.108.14"></a><var>108.14</var>withdrawals from the county joint trust fund account under section 477A.30.<br/>
<a id="pl.108.15"></a><var>108.15</var>(f) If the land for which a payment under this subdivision is made is subsequently
         sold <br/>
<a id="pl.108.16"></a><var>108.16</var>to another entity and is no longer available for the use for which it was purchased,
         the <br/>
<a id="pl.108.17"></a><var>108.17</var>original amount of the payment for that land under paragraph (b) must be withdrawn
         by the <br/>
<a id="pl.108.18"></a><var>108.18</var>commissioner of revenue from the account established under section 11A.237 and returned
         <br/>
<a id="pl.108.19"></a><var>108.19</var>to the outdoor heritage fund. If only a portion of the land is sold and no longer
         available for <br/>
<a id="pl.108.20"></a><var>108.20</var>the use for which it was purchased, the amount of the original trust fund payment
         returned <br/>
<a id="pl.108.21"></a><var>108.21</var>is reduced proportionately based on the portion of the original purchase that is sold.
         The <br/>
<a id="pl.108.22"></a><var>108.22</var>holder of the land must inform the commissioner of revenue and the county in which
         the <br/>
<a id="pl.108.23"></a><var>108.23</var>land is sold of the sale and provide them with any information necessary to calculate
         the <br/>
<a id="pl.108.24"></a><var>108.24</var>required withdrawal from the account. The withdrawal is made along with withdrawals
         <br/>
<a id="pl.108.25"></a><var>108.25</var>under section 477A.30 in the calendar year after the year in which the land is sold.<br/>
<a id="pl.108.26"></a><var>108.26</var><b>EFFECTIVE DATE.</b>This section is effective July 1, 2017, and applies to land acquired <br/>
<a id="pl.108.27"></a><var>108.27</var>with money appropriated on or after that date.<br/>
<br/>
<a id="bill.4.4.0"></a><a id="pl.108.28"></a><var>108.28</var>    Sec. 4. Minnesota Statutes 2016, section 97A.056, subdivision 3, is amended to read:<br/>
<a id="pl.108.29"></a><var>108.29</var>    Subd. 3. <b>Council recommendations.</b> (a) The council shall make recommendations to <br/>
<a id="pl.108.30"></a><var>108.30</var>the legislature on appropriations of money from the outdoor heritage fund that are
         consistent <br/>
<a id="pl.108.31"></a><var>108.31</var>with the Constitution and state law and that will achieve the outcomes of existing
         natural <br/>
<a id="pl.108.32"></a><var>108.32</var>resource plans, including, but not limited to, the Minnesota Statewide Conservation
         and <br/>
<a id="pl.108.33"></a><var>108.33</var>Preservation Plan, that directly relate to the restoration, protection, and enhancement
         of <br/>
<a id="pl.109.1"></a><var>109.1</var>wetlands, prairies, forests, and habitat for fish, game, and wildlife, and that prevent
         forest <br/>
<a id="pl.109.2"></a><var>109.2</var>fragmentation, encourage forest consolidation, and expand restored native prairie.
         In making <br/>
<a id="pl.109.3"></a><var>109.3</var>recommendations, the council shall consider a range of options that would best restore,
         <br/>
<a id="pl.109.4"></a><var>109.4</var>protect, and enhance wetlands, prairies, forests, and habitat for fish, game, and
         wildlife. <br/>
<a id="pl.109.5"></a><var>109.5</var>The council recommendations each year on appropriation of money from the outdoor heritage
         <br/>
<a id="pl.109.6"></a><var>109.6</var>fund must include amounts adequate to make the required transfers to the outdoor heritage
         <br/>
<a id="pl.109.7"></a><var>109.7</var>trust fund payment account according to subdivision 1b. The council's recommendations <br/>
<a id="pl.109.8"></a><var>109.8</var>shall be submitted no later than January 15 each year. The council shall present its
         <br/>
<a id="pl.109.9"></a><var>109.9</var>recommendations to the senate and house of representatives committees with jurisdiction
         <br/>
<a id="pl.109.10"></a><var>109.10</var>over the environment and natural resources budget by February 15 in odd-numbered years,
         <br/>
<a id="pl.109.11"></a><var>109.11</var>and within the first four weeks of the legislative session in even-numbered years.
         The <br/>
<a id="pl.109.12"></a><var>109.12</var>council's budget recommendations to the legislature shall be separate from the Department
         <br/>
<a id="pl.109.13"></a><var>109.13</var>of Natural Resource's budget recommendations.<br/>
<a id="pl.109.14"></a><var>109.14</var>    (b) To encourage and support local conservation efforts, the council shall establish
         a <br/>
<a id="pl.109.15"></a><var>109.15</var>conservation partners program. Local, regional, state, or national organizations may
         apply <br/>
<a id="pl.109.16"></a><var>109.16</var>for matching grants for restoration, protection, and enhancement of wetlands, prairies,
         <br/>
<a id="pl.109.17"></a><var>109.17</var>forests, and habitat for fish, game, and wildlife, prevention of forest fragmentation,
         <br/>
<a id="pl.109.18"></a><var>109.18</var>encouragement of forest consolidation, and expansion of restored native prairie.<br/>
<a id="pl.109.19"></a><var>109.19</var>    (c) The council may work with the Clean Water Council to identify projects that are
         <br/>
<a id="pl.109.20"></a><var>109.20</var>consistent with both the purpose of the outdoor heritage fund and the purpose of the
         clean <br/>
<a id="pl.109.21"></a><var>109.21</var>water fund.<br/>
<a id="pl.109.22"></a><var>109.22</var>    (d) The council may make recommendations to the Legislative-Citizen Commission on
         <br/>
<a id="pl.109.23"></a><var>109.23</var>Minnesota Resources on scientific research that will assist in restoring, protecting,
         and <br/>
<a id="pl.109.24"></a><var>109.24</var>enhancing wetlands, prairies, forests, and habitat for fish, game, and wildlife, preventing
         <br/>
<a id="pl.109.25"></a><var>109.25</var>forest fragmentation, encouraging forest consolidation, and expanding restored native
         prairie.<br/>
<a id="pl.109.26"></a><var>109.26</var>    (e) Recommendations of the council, including approval of recommendations for the
         <br/>
<a id="pl.109.27"></a><var>109.27</var>outdoor heritage fund, require an affirmative vote of at least nine members of the
         council.<br/>
<a id="pl.109.28"></a><var>109.28</var>(f) The council may work with the Clean Water Council, the Legislative-Citizen <br/>
<a id="pl.109.29"></a><var>109.29</var>Commission on Minnesota Resources, the Board of Water and Soil Resources, soil and
         <br/>
<a id="pl.109.30"></a><var>109.30</var>water conservation districts, and experts from Minnesota State Colleges and Universities
         <br/>
<a id="pl.109.31"></a><var>109.31</var>and the University of Minnesota in developing the council's recommendations.<br/>
<a id="pl.109.32"></a><var>109.32</var>(g) The council shall develop and implement a process that ensures that citizens and
         <br/>
<a id="pl.109.33"></a><var>109.33</var>potential recipients of funds are included throughout the process, including the development
         <br/>
<a id="pl.109.34"></a><var>109.34</var>and finalization of the council's recommendations. The process must include a fair,
         equitable, <br/>
<a id="pl.110.1"></a><var>110.1</var>and thorough process for reviewing requests for funding and a clear and easily understood
         <br/>
<a id="pl.110.2"></a><var>110.2</var>process for ranking projects.<br/>
<a id="pl.110.3"></a><var>110.3</var>(h) The council shall use the regions of the state based upon the ecological sections
         and <br/>
<a id="pl.110.4"></a><var>110.4</var>subsections developed by the Department of Natural Resources and establish objectives
         for <br/>
<a id="pl.110.5"></a><var>110.5</var>each region and subregion to achieve the purposes of the fund outlined in the state
         <br/>
<a id="pl.110.6"></a><var>110.6</var>constitution.<br/>
<a id="pl.110.7"></a><var>110.7</var>(i) The council shall develop and submit to the Legislative Coordinating Commission
         <br/>
<a id="pl.110.8"></a><var>110.8</var>plans for the first ten years of funding, and a framework for 25 years of funding,
         consistent <br/>
<a id="pl.110.9"></a><var>110.9</var>with statutory and constitutional requirements. The council may use existing plans
         from <br/>
<a id="pl.110.10"></a><var>110.10</var>other legislative, state, and federal sources, as applicable.<br/>
<a id="pl.110.11"></a><var>110.11</var><b>EFFECTIVE DATE.</b>This section is effective July 1, 2017, and applies to lands acquired <br/>
<a id="pl.110.12"></a><var>110.12</var>with money appropriated on or after that date.<br/>
<br/>
<a id="bill.4.5.0"></a><a id="pl.110.13"></a><var>110.13</var>    Sec. 5. Minnesota Statutes 2016, section 97A.056, is amended by adding a subdivision to <br/>
<a id="pl.110.14"></a><var>110.14</var>read:<br/>
<a id="pl.110.15"></a><var>110.15</var>    Subd. 15a. <b>State acquisition of land; restrictions.</b> The state may not use money from <br/>
<a id="pl.110.16"></a><var>110.16</var>the outdoor heritage fund to acquire in fee simple in whole or in part any land subject
         to <br/>
<a id="pl.110.17"></a><var>110.17</var>property taxes or any land owned by a nonprofit organization that was subject to property
         <br/>
<a id="pl.110.18"></a><var>110.18</var>taxes before the land's acquisition by the nonprofit organization if (1) subdivision
         1b is void, <br/>
<a id="pl.110.19"></a><var>110.19</var>or (2) sufficient funds to cover the onetime trust fund payment required under subdivision
         <br/>
<a id="pl.110.20"></a><var>110.20</var>1b have not been appropriated or are not available.<br/>
<a id="pl.110.21"></a><var>110.21</var><b>EFFECTIVE DATE.</b>This section is effective July 1, 2017, and applies to land acquired <br/>
<a id="pl.110.22"></a><var>110.22</var>with money appropriated on or after that date.<br/>
<br/>
<a id="bill.4.6.0"></a><a id="pl.110.23"></a><var>110.23</var>    Sec. 6. Minnesota Statutes 2016, section 116P.02, subdivision 1, is amended to read:<br/>
<a id="pl.110.24"></a><var>110.24</var>    Subdivision 1. <b>Applicability.</b> The definitions in this section apply to this chapter, except <br/>
<a id="pl.110.25"></a><var>110.25</var>that the definition in subdivision 6 does not apply to section 116P.045.<br/>
<a id="pl.110.26"></a><var>110.26</var><b>EFFECTIVE DATE.</b>This section is effective July 1, 2017.<br/>
<br/>
<a id="bill.4.7.0"></a><a id="pl.110.27"></a><var>110.27</var>    Sec. 7. Minnesota Statutes 2016, section 116P.02, is amended by adding a subdivision to <br/>
<a id="pl.110.28"></a><var>110.28</var>read:<br/>
<a id="pl.110.29"></a><var>110.29</var>    Subd. 4a. <b>Land acquisition costs.</b> "Land acquisition costs" means acquisition <br/>
<a id="pl.110.30"></a><var>110.30</var>coordination costs, costs of engineering services, appraisal fees, attorney fees,
         taxes, <br/>
<a id="pl.111.1"></a><var>111.1</var>assessments required at the time of purchase, payments under section 116P.045, and
         recording <br/>
<a id="pl.111.2"></a><var>111.2</var>fees.<br/>
<a id="pl.111.3"></a><var>111.3</var><b>EFFECTIVE DATE.</b>This section is effective July 1, 2017.<br/>
<br/>
<a id="bill.4.8.0"></a><a id="pl.111.4"></a><var>111.4</var>    Sec. 8. Minnesota Statutes 2016, section 116P.02, is amended by adding a subdivision to <br/>
<a id="pl.111.5"></a><var>111.5</var>read:<br/>
<a id="pl.111.6"></a><var>111.6</var>    Subd. 4b. <b>Land-related property taxes.</b> "Land-related property taxes" means property <br/>
<a id="pl.111.7"></a><var>111.7</var>taxes collected on behalf of local governments providing land-related services.<br/>
<a id="pl.111.8"></a><var>111.8</var><b>EFFECTIVE DATE.</b>This section is effective July 1, 2017.<br/>
<br/>
<a id="bill.4.9.0"></a><a id="pl.111.9"></a><var>111.9</var>    Sec. 9. Minnesota Statutes 2016, section 116P.02, is amended by adding a subdivision to <br/>
<a id="pl.111.10"></a><var>111.10</var>read:<br/>
<a id="pl.111.11"></a><var>111.11</var>    Subd. 4c. <b>Local governments providing land-related services.</b> "Local governments <br/>
<a id="pl.111.12"></a><var>111.12</var>providing land-related services" means counties, townships, home rule charter and
         statutory <br/>
<a id="pl.111.13"></a><var>111.13</var>cities, watershed districts under chapter 103D, sanitary districts under sections
         442A.01 to <br/>
<a id="pl.111.14"></a><var>111.14</var>442A.29, and regional sanitary sewer districts under sections 115.61 to 115.67.<br/>
<a id="pl.111.15"></a><var>111.15</var><b>EFFECTIVE DATE.</b>This section is effective July 1, 2017.<br/>
<br/>
<a id="bill.4.10.0"></a><a id="pl.111.16"></a><var>111.16</var>    Sec. 10. Minnesota Statutes 2016, section 116P.02, is amended by adding a subdivision <br/>
<a id="pl.111.17"></a><var>111.17</var>to read:<br/>
<a id="pl.111.18"></a><var>111.18</var>    Subd. 4d. <b>Total payment for the land.</b> "Total payment for the land" means the total <br/>
<a id="pl.111.19"></a><var>111.19</var>price paid for the land including land acquisition costs, but excluding any in-kind
         services <br/>
<a id="pl.111.20"></a><var>111.20</var>provided by nongovernmental entities at no cost to the state.<br/>
<a id="pl.111.21"></a><var>111.21</var><b>EFFECTIVE DATE.</b>This section is effective July 1, 2017.<br/>
<br/>
<a id="bill.4.11.0"></a><a id="pl.111.22"></a><var>111.22</var>    Sec. 11. <b>[116P.045] ENVIRONMENT AND NATURAL RESOURCES TRUST FUND </b><br/>
<a id="pl.111.23"></a><var>111.23</var><b>PAYMENT ACCOUNT.</b><br/>
<a id="pl.111.24"></a><var>111.24</var>    Subdivision 1. <b>Account created.</b> An environment and natural resources trust fund <br/>
<a id="pl.111.25"></a><var>111.25</var>payment account is created in the special revenue fund. The State Board of Investment
         must <br/>
<a id="pl.111.26"></a><var>111.26</var>ensure the account is invested under section 11A.24. The commissioner of management
         <br/>
<a id="pl.111.27"></a><var>111.27</var>and budget must credit to the account all money appropriated to the account and all
         money <br/>
<a id="pl.111.28"></a><var>111.28</var>earned by the account. The principal of the account and any unexpended earnings must
         be <br/>
<a id="pl.111.29"></a><var>111.29</var>invested and reinvested by the State Board of Investment. Nothing in this section
         limits the <br/>
<a id="pl.112.1"></a><var>112.1</var>source of contributions to the account. Money in the account must be used only for
         the <br/>
<a id="pl.112.2"></a><var>112.2</var>purposes of this section.<br/>
<a id="pl.112.3"></a><var>112.3</var>    Subd. 2. <b>Trust fund payment; appropriation.</b> (a) State land acquired in fee simple in <br/>
<a id="pl.112.4"></a><var>112.4</var>whole or in part with money appropriated from the environment and natural resources
         trust <br/>
<a id="pl.112.5"></a><var>112.5</var>fund is eligible for a onetime trust fund payment as provided under this subdivision.
         The <br/>
<a id="pl.112.6"></a><var>112.6</var>percentage of the total acres acquired in any purchase that is eligible for a trust
         fund payment <br/>
<a id="pl.112.7"></a><var>112.7</var>under this section is equal to the percentage of the total payment for the land funded
         from <br/>
<a id="pl.112.8"></a><var>112.8</var>environment and natural resources trust fund revenues. If the percentage of the total
         payment <br/>
<a id="pl.112.9"></a><var>112.9</var>for the land from the environment and natural resources trust fund is ten percent
         or less, the <br/>
<a id="pl.112.10"></a><var>112.10</var>parcel is ineligible for a payment under this section; if the percentage is 90 percent
         or more, <br/>
<a id="pl.112.11"></a><var>112.11</var>the entire parcel is eligible for the payment under this section. The commissioner
         of natural <br/>
<a id="pl.112.12"></a><var>112.12</var>resources must certify to the commissioner of revenue and the county in which land
         eligible <br/>
<a id="pl.112.13"></a><var>112.13</var>for a payment under this section is purchased the total number of acres purchased,
         the total <br/>
<a id="pl.112.14"></a><var>112.14</var>payment for the land, and the amount of environmental and natural resources trust
         fund <br/>
<a id="pl.112.15"></a><var>112.15</var>revenues used for the purchase. The trust fund payment is equal to 30 times the land-related
         <br/>
<a id="pl.112.16"></a><var>112.16</var>property taxes assessed on the eligible portion of the land in the year prior to the
         year in <br/>
<a id="pl.112.17"></a><var>112.17</var>which the land is acquired. If the land was acquired from a private party that was
         exempt <br/>
<a id="pl.112.18"></a><var>112.18</var>from paying property taxes, the payments must be based on 30 times the property taxes
         <br/>
<a id="pl.112.19"></a><var>112.19</var>assessed on comparable land in the year prior to the year in which the land is acquired.
         By <br/>
<a id="pl.112.20"></a><var>112.20</var>September 1 each year, the county in which the land is acquired must provide the <br/>
<a id="pl.112.21"></a><var>112.21</var>commissioner of revenue with information necessary in a form determined by the <br/>
<a id="pl.112.22"></a><var>112.22</var>commissioner of revenue to make this determination for all lands acquired for the
         12-month <br/>
<a id="pl.112.23"></a><var>112.23</var>period ending on June 30 of that year. The commissioner of revenue must make a trust
         fund <br/>
<a id="pl.112.24"></a><var>112.24</var>payment on behalf of each county on the same date as the first payment under section
         <br/>
<a id="pl.112.25"></a><var>112.25</var>273.1384, subdivision 4, each year for all land acquired in that county in the 12-month
         <br/>
<a id="pl.112.26"></a><var>112.26</var>period ending on June 30 of that year to the State Board of Investment as required
         under <br/>
<a id="pl.112.27"></a><var>112.27</var>this section. The money so deposited is money paid to the counties and may only be
         <br/>
<a id="pl.112.28"></a><var>112.28</var>withdrawn for the purposes allowed under section 477A.30. The commissioner of revenue
         <br/>
<a id="pl.112.29"></a><var>112.29</var>must inform each county by October 15 each year of the amount deposited on the county's
         <br/>
<a id="pl.112.30"></a><var>112.30</var>behalf with the State Board of Investment under this subdivision.<br/>
<a id="pl.112.31"></a><var>112.31</var>(b) The amount necessary to make the payments required under this subdivision is <br/>
<a id="pl.112.32"></a><var>112.32</var>annually appropriated from the environment and natural resources trust fund payment
         <br/>
<a id="pl.112.33"></a><var>112.33</var>account to the commissioner of revenue for deposit in the account for county joint
         trust <br/>
<a id="pl.112.34"></a><var>112.34</var>fund payments in section 11A.237.<br/>
<a id="pl.113.1"></a><var>113.1</var>(c) If the land for which a payment under this subdivision is made is subsequently
         sold <br/>
<a id="pl.113.2"></a><var>113.2</var>to another entity and is no longer available for the use for which it was purchased,
         the <br/>
<a id="pl.113.3"></a><var>113.3</var>original amount of the payment for that land under paragraph (a) must be withdrawn
         by the <br/>
<a id="pl.113.4"></a><var>113.4</var>commissioner of revenue from the account established under section 11A.237 and returned
         <br/>
<a id="pl.113.5"></a><var>113.5</var>to the environment and natural resources trust fund. If only a portion of the land
         is sold and <br/>
<a id="pl.113.6"></a><var>113.6</var>no longer available for the use for which it was purchased, the amount of the original
         trust <br/>
<a id="pl.113.7"></a><var>113.7</var>fund payment returned is reduced proportionately based on the portion of the original
         <br/>
<a id="pl.113.8"></a><var>113.8</var>purchase that is sold. The holder of the land must inform the commissioner of revenue
         and <br/>
<a id="pl.113.9"></a><var>113.9</var>the county in which the land is sold of the sale and provide them with any information
         <br/>
<a id="pl.113.10"></a><var>113.10</var>necessary to calculate the required withdrawal from the account. The withdrawal is
         made <br/>
<a id="pl.113.11"></a><var>113.11</var>along with withdrawals under section 477A.30 in the calendar year after the year in
         which <br/>
<a id="pl.113.12"></a><var>113.12</var>the land is sold.<br/>
<a id="pl.113.13"></a><var>113.13</var>    Subd. 3. <b>County requirements.</b> To receive a trust fund payment under this section, a <br/>
<a id="pl.113.14"></a><var>113.14</var>county board must enter into an agreement with the State Board of Investment to allow
         the <br/>
<a id="pl.113.15"></a><var>113.15</var>commissioner of revenue to make deposits and withdrawals on behalf of the county into
         <br/>
<a id="pl.113.16"></a><var>113.16</var>and out of the county joint trust fund account under section 11A.237.<br/>
<a id="pl.113.17"></a><var>113.17</var>    Subd. 4. <b>Ineligible for other payments.</b> Land receiving a trust fund payment under this <br/>
<a id="pl.113.18"></a><var>113.18</var>section is not eligible for payments under sections 477A.11 to 477A.14, but is eligible
         for <br/>
<a id="pl.113.19"></a><var>113.19</var>distribution of withdrawals from the county joint trust fund account under section
         477A.30.<br/>
<a id="pl.113.20"></a><var>113.20</var>    Subd. 5. <b>State acquisition of land; restrictions.</b> The state may not use money from the <br/>
<a id="pl.113.21"></a><var>113.21</var>environment and natural resources trust fund to acquire in fee simple in whole or
         in part <br/>
<a id="pl.113.22"></a><var>113.22</var>any land subject to property taxes or any land owned by a nonprofit organization that
         was <br/>
<a id="pl.113.23"></a><var>113.23</var>subject to property taxes before the land's acquisition by the nonprofit organization
         if (1) <br/>
<a id="pl.113.24"></a><var>113.24</var>subdivision 2 is void, or (2) sufficient funds to cover the onetime trust fund payment
         required <br/>
<a id="pl.113.25"></a><var>113.25</var>under subdivision 2 have not been appropriated or are not available.<br/>
<a id="pl.113.26"></a><var>113.26</var><b>EFFECTIVE DATE.</b>This section is effective July 1, 2017, and applies to land acquired <br/>
<a id="pl.113.27"></a><var>113.27</var>with money appropriated on or after that date.<br/>
<br/>
<a id="bill.4.12.0"></a><a id="pl.113.28"></a><var>113.28</var>    Sec. 12. Minnesota Statutes 2016, section 116P.08, subdivision 1, is amended to read:<br/>
<a id="pl.113.29"></a><var>113.29</var>    Subdivision 1. <b>Expenditures.</b> Money in the trust fund may be spent only for:<br/>
<a id="pl.113.30"></a><var>113.30</var>(1) the reinvest in Minnesota program as provided in section 
         <statute_ref>84.95, subdivision 2</statute_ref>;<br/>
<a id="pl.113.31"></a><var>113.31</var>(2) research that contributes to increasing the effectiveness of protecting or managing
         <br/>
<a id="pl.113.32"></a><var>113.32</var>the state's environment or natural resources;<br/>
<a id="pl.114.1"></a><var>114.1</var>(3) collection and analysis of information that assists in developing the state's
         <br/>
<a id="pl.114.2"></a><var>114.2</var>environmental and natural resources policies;<br/>
<a id="pl.114.3"></a><var>114.3</var>(4) enhancement of public education, awareness, and understanding necessary for the
         <br/>
<a id="pl.114.4"></a><var>114.4</var>protection, conservation, restoration, and enhancement of air, land, water, forests,
         fish, <br/>
<a id="pl.114.5"></a><var>114.5</var>wildlife, and other natural resources;<br/>
<a id="pl.114.6"></a><var>114.6</var>(5) capital projects for the preservation and protection of unique natural resources;<br/>
<a id="pl.114.7"></a><var>114.7</var>(6) activities that preserve or enhance fish, wildlife, land, air, water, and other
         natural <br/>
<a id="pl.114.8"></a><var>114.8</var>resources that otherwise may be substantially impaired or destroyed in any area of
         the state;<br/>
<a id="pl.114.9"></a><var>114.9</var>(7) administrative and investment expenses incurred by the State Board of Investment
         <br/>
<a id="pl.114.10"></a><var>114.10</var>in investing deposits to the trust fund; and<br/>
<a id="pl.114.11"></a><var>114.11</var>(8) administrative expenses subject to the limits in section 
         <statute_ref>116P.09</statute_ref>.; and<br/>
<a id="pl.114.12"></a><var>114.12</var>(9) payments to the environment and natural resources trust fund payment account as
         <br/>
<a id="pl.114.13"></a><var>114.13</var>required in section 116P.045.<br/>
<a id="pl.114.14"></a><var>114.14</var><b>EFFECTIVE DATE.</b>This section is effective July 1, 2017, and applies to lands acquired <br/>
<a id="pl.114.15"></a><var>114.15</var>with money appropriated on or after that date.<br/>
<br/>
<a id="bill.4.13.0"></a><a id="pl.114.16"></a><var>114.16</var>    Sec. 13. Minnesota Statutes 2016, section 116P.08, subdivision 4, is amended to read:<br/>
<a id="pl.114.17"></a><var>114.17</var>    Subd. 4. <b> Legislative recommendations.</b> (a) Funding may be provided only for those <br/>
<a id="pl.114.18"></a><var>114.18</var>projects that meet the categories established in subdivision 1.<br/>
<a id="pl.114.19"></a><var>114.19</var>(b) The commission must recommend an annual or biennial legislative bill to make <br/>
<a id="pl.114.20"></a><var>114.20</var>appropriations from the trust fund for the purposes provided in subdivision 1. The
         <br/>
<a id="pl.114.21"></a><var>114.21</var>recommendations must be submitted to the governor for inclusion in the biennial budget
         <br/>
<a id="pl.114.22"></a><var>114.22</var>and supplemental budget submitted to the legislature.<br/>
<a id="pl.114.23"></a><var>114.23</var>(c) The commission may recommend regional block grants for a portion of trust fund
         <br/>
<a id="pl.114.24"></a><var>114.24</var>expenditures to partner with existing regional organizations that have strong citizen
         <br/>
<a id="pl.114.25"></a><var>114.25</var>involvement, to address unique local needs and capacity, and to leverage all available
         funding <br/>
<a id="pl.114.26"></a><var>114.26</var>sources for projects.<br/>
<a id="pl.114.27"></a><var>114.27</var>(d) The commission may recommend the establishment of an emerging issues account <br/>
<a id="pl.114.28"></a><var>114.28</var>in its legislative bill for funding emerging issues, which come up unexpectedly, but
         which <br/>
<a id="pl.114.29"></a><var>114.29</var>still adhere to the commission's strategic plan, to be approved by the governor after
         initiation <br/>
<a id="pl.114.30"></a><var>114.30</var>and recommendation by the commission.<br/>
<a id="pl.115.1"></a><var>115.1</var>(e) The council must recommend an appropriation of money from the environment and <br/>
<a id="pl.115.2"></a><var>115.2</var>natural resources trust fund adequate to make the required transfers to the environment
         and <br/>
<a id="pl.115.3"></a><var>115.3</var>natural resources trust fund payment account according to section 116P.045.<br/>
<a id="pl.115.4"></a><var>115.4</var>(f) Money in the trust fund may not be spent except under an appropriation by law.<br/>
<a id="pl.115.5"></a><var>115.5</var><b>EFFECTIVE DATE.</b>This section is effective July 1, 2017, and applies to lands acquired <br/>
<a id="pl.115.6"></a><var>115.6</var>with money appropriated on or after that date.<br/>
<br/>
<a id="bill.4.14.0"></a><a id="pl.115.7"></a><var>115.7</var>    Sec. 14. Minnesota Statutes 2016, section 477A.10, is amended to read:<br/>
<a id="pl.115.8"></a><var>115.8</var><b>477A.10 NATURAL RESOURCES LAND PAYMENTS IN LIEU; PURPOSE.</b><br/>
<a id="pl.115.9"></a><var>115.9</var>The purposes of sections 
         <statute_ref>477A.11</statute_ref> to 
         <statute_ref>477A.14</statute_ref> are:<br/>
<a id="pl.115.10"></a><var>115.10</var>(1) to compensate local units of government for the loss of tax base from state ownership
         <br/>
<a id="pl.115.11"></a><var>115.11</var>of land, except land acquired on or after July 1, 2017, receiving trust fund payments from
         <br/>
<a id="pl.115.12"></a><var>115.12</var>the outdoor heritage trust fund payment account or the environment and natural resources
         <br/>
<a id="pl.115.13"></a><var>115.13</var>trust fund payment account, and the need to provide services for state land;<br/>
<a id="pl.115.14"></a><var>115.14</var>(2) to address the disproportionate impact of state land ownership on local units
         of <br/>
<a id="pl.115.15"></a><var>115.15</var>government with a large proportion of state land; and<br/>
<a id="pl.115.16"></a><var>115.16</var>(3) to address the need to manage state lands held in trust for the local taxing districts.<br/>
<a id="pl.115.17"></a><var>115.17</var><b>EFFECTIVE DATE.</b>This section is effective the day following final enactment.<br/>
<br/>
<a id="bill.4.15.0"></a><a id="pl.115.18"></a><var>115.18</var>    Sec. 15. Minnesota Statutes 2016, section 477A.11, is amended by adding a subdivision <br/>
<a id="pl.115.19"></a><var>115.19</var>to read:<br/>
<a id="pl.115.20"></a><var>115.20</var>    Subd. 9. <b>Environment and natural resources trust fund lands.</b> Notwithstanding any <br/>
<a id="pl.115.21"></a><var>115.21</var>other provision of law to the contrary, parcels or portions of parcels of land purchased
         on <br/>
<a id="pl.115.22"></a><var>115.22</var>or after July 1, 2017, and eligible for a trust fund payment under section 116P.045
         are not <br/>
<a id="pl.115.23"></a><var>115.23</var>included in the definitions of the lands described in subdivisions 3 to 7 and are
         excluded <br/>
<a id="pl.115.24"></a><var>115.24</var>from payments under sections 477A.11 to 477A.14.<br/>
 <a id="pl.115.25"></a><var>115.25</var><b>EFFECTIVE DATE.</b>This section is effective beginning with aids payable in 2018.<br/>
<br/>
<a id="bill.4.16.0"></a><a id="pl.115.26"></a><var>115.26</var>    Sec. 16. Minnesota Statutes 2016, section 477A.11, is amended by adding a subdivision <br/>
<a id="pl.115.27"></a><var>115.27</var>to read:<br/>
<a id="pl.115.28"></a><var>115.28</var>    Subd. 10. <b>Outdoor heritage lands.</b> Notwithstanding any other provision of law to the <br/>
<a id="pl.115.29"></a><var>115.29</var>contrary, parcels or portions of parcels of land purchased on or after July 1, 2017,
         and <br/>
<a id="pl.115.30"></a><var>115.30</var>eligible for a trust fund payment under section 97A.056, subdivision 1b, are not included
         <br/>
<a id="pl.116.1"></a><var>116.1</var>in the definitions of the lands described in subdivisions 3 to 7 and are excluded
         from <br/>
<a id="pl.116.2"></a><var>116.2</var>payments under sections 477A.11 to 477A.14.<br/>
 <a id="pl.116.3"></a><var>116.3</var><b>EFFECTIVE DATE.</b>This section is effective beginning with aids payable in 2018.<br/>
<br/>
<a id="bill.4.17.0"></a><a id="pl.116.4"></a><var>116.4</var>    Sec. 17. <b>[477A.30] ANNUAL COUNTY JOINT TRUST FUND WITHDRAWALS </b><br/>
<a id="pl.116.5"></a><var>116.5</var><b>AND DISTRIBUTION FOR ENVIRONMENT AND NATURAL RESOURCES </b><br/>
<a id="pl.116.6"></a><var>116.6</var><b>TRUST FUND LANDS AND OUTDOOR HERITAGE LANDS.</b><br/>
<a id="pl.116.7"></a><var>116.7</var>    Subdivision 1. <b>Commissioner of revenue; withdrawals and payments.</b> No later than <br/>
<a id="pl.116.8"></a><var>116.8</var>November 15 each year, the commissioner of revenue shall make a withdrawal on behalf
         <br/>
<a id="pl.116.9"></a><var>116.9</var>of all eligible counties from the county joint trust fund account established under
         section <br/>
<a id="pl.116.10"></a><var>116.10</var>11A.237 equal to the lesser of (1) the total amount of necessary withdrawals certified
         by <br/>
<a id="pl.116.11"></a><var>116.11</var>the counties under subdivision 2 for the year, or (2) 5-1/2 percent of the amount
         in that <br/>
<a id="pl.116.12"></a><var>116.12</var>account as of September 1 of that year as determined by the executive director of
         the State <br/>
<a id="pl.116.13"></a><var>116.13</var>Board of Investment. The commissioner shall distribute the certified withdrawal amounts
         <br/>
<a id="pl.116.14"></a><var>116.14</var>to each county by November 31. If the amount of the withdrawal is less than the total
         <br/>
<a id="pl.116.15"></a><var>116.15</var>certified withdrawal amounts under subdivision 2, the commissioner shall reduce the
         <br/>
<a id="pl.116.16"></a><var>116.16</var>distribution to each county proportionately.<br/>
<a id="pl.116.17"></a><var>116.17</var>    Subd. 2. <b>Certification of needed withdrawal; distribution of funds.</b> (a) Beginning in <br/>
<a id="pl.116.18"></a><var>116.18</var>calendar year 2018, by September 1 each year, a county for whom a trust fund payment
         has <br/>
<a id="pl.116.19"></a><var>116.19</var>been made on its behalf under section 97A.056, subdivision 1b, or 116P.045, subdivision
         <br/>
<a id="pl.116.20"></a><var>116.20</var>2, shall calculate and certify to the commissioner of revenue the amount of trust
         fund <br/>
<a id="pl.116.21"></a><var>116.21</var>withdrawals needed under this section. The amount of the withdrawal for each parcel
         of <br/>
<a id="pl.116.22"></a><var>116.22</var>land for which a county received a trust fund payment under either provision is as
         follows:<br/>
<a id="pl.116.23"></a><var>116.23</var>(1) for the year in which a trust fund payment is made to a county for a parcel of
         land, <br/>
<a id="pl.116.24"></a><var>116.24</var>the withdrawal for that parcel is equal to:<br/>
<a id="pl.116.25"></a><var>116.25</var>(i) the remaining taxes owed to the local governments providing land-related services
         <br/>
<a id="pl.116.26"></a><var>116.26</var>for taxes spread that year for a parcel acquired between January 1 and June 30; or<br/>
<a id="pl.116.27"></a><var>116.27</var>(ii) the amount of taxes paid to the local governments providing land-related services
         <br/>
<a id="pl.116.28"></a><var>116.28</var>on the parcel in the previous year if the parcel was acquired before January 1 of
         the current <br/>
<a id="pl.116.29"></a><var>116.29</var>year. The county must distribute the amount by December 15 to all local governments
         <br/>
<a id="pl.116.30"></a><var>116.30</var>providing land-related services based on the location of the parcel and the local
         governments' <br/>
<a id="pl.116.31"></a><var>116.31</var>share of the total tax; and<br/>
<a id="pl.116.32"></a><var>116.32</var>(2) for all subsequent years, the withdrawal for a parcel is equal to the taxes that
         would <br/>
<a id="pl.116.33"></a><var>116.33</var>be owed based on the appraised value of the land and the taxes assessed by local governments
         <br/>
<a id="pl.117.1"></a><var>117.1</var>providing land-related services on comparable, privately owned adjacent land. For
         purposes <br/>
<a id="pl.117.2"></a><var>117.2</var>of this subdivision, "appraised value" is determined in the manner described in section
         <br/>
<a id="pl.117.3"></a><var>117.3</var>477A.12, subdivision 3. The county treasurer must allocate the withdrawn funds among
         the <br/>
<a id="pl.117.4"></a><var>117.4</var>local governments providing land-related services on the same basis as if the funds
         were <br/>
<a id="pl.117.5"></a><var>117.5</var>taxes on the land received in that year. The county treasurer must pay the allocation
         to all <br/>
<a id="pl.117.6"></a><var>117.6</var>eligible local governments by December 15 of the year in which the withdrawal is made.
         <br/>
<a id="pl.117.7"></a><var>117.7</var>The county's share of the payment must be deposited in the county general fund.<br/>
<a id="pl.117.8"></a><var>117.8</var>(b) If the distribution to a county under subdivision 1 is less than its total withdrawal
         <br/>
<a id="pl.117.9"></a><var>117.9</var>amounts certified under this subdivision, all distributions under paragraph (a) are
         reduced <br/>
<a id="pl.117.10"></a><var>117.10</var>proportionately.<br/>
<a id="pl.117.11"></a><var>117.11</var>(c) The local governments receiving a payment under this section must use the money
         <br/>
<a id="pl.117.12"></a><var>117.12</var>to fund land-related services. For purposes of this paragraph, "land-related services"
         means <br/>
<a id="pl.117.13"></a><var>117.13</var>services used to restore, enhance, and protect the land and its fish and wildlife
         habitat and <br/>
<a id="pl.117.14"></a><var>117.14</var>provide any other public services benefiting the land and users of the land, including
         access <br/>
<a id="pl.117.15"></a><var>117.15</var>and services to the public accessing and using the land and direct and indirect capital
         and <br/>
<a id="pl.117.16"></a><var>117.16</var>operating costs for (1) roads, bridges, and trails; (2) public safety and emergency
         response <br/>
<a id="pl.117.17"></a><var>117.17</var>services; (3) environmental, recreational, and resource development and management;
         and <br/>
<a id="pl.117.18"></a><var>117.18</var>(4) similar costs.<br/>
<a id="pl.117.19"></a><var>117.19</var>(d) For purposes of this subdivision, "local governments providing land-related services"
         <br/>
<a id="pl.117.20"></a><var>117.20</var>has the meaning given in section 116P.02, subdivision 4c.<br/>
<a id="pl.117.21"></a><var>117.21</var><b>EFFECTIVE DATE.</b>This section is effective January 1, 2018, and applies to land <br/>
<a id="pl.117.22"></a><var>117.22</var>acquired with money appropriated on or after July 1, 2017.<br/>
<br/>
<a id="bill.4.18.0"></a><a id="pl.117.23"></a><var>117.23</var>    Sec. 18. <b>DELAYED REQUIREMENT FOR TRUST FUND PAYMENTS FOR </b><br/>
<a id="pl.117.24"></a><var>117.24</var><b>APPROPRIATIONS MADE FOR FISCAL YEAR 2018.</b><br/>
 <a id="pl.117.25"></a><var>117.25</var>(a) Notwithstanding Minnesota Statutes, section 97A.056, subdivision 15a, the state
         <br/>
<a id="pl.117.26"></a><var>117.26</var>may appropriate money for fiscal year 2018 from the outdoor heritage fund to purchase
         <br/>
<a id="pl.117.27"></a><var>117.27</var>land without appropriating sufficient funds to cover the onetime trust fund payment
         required <br/>
<a id="pl.117.28"></a><var>117.28</var>under Minnesota Statutes, section 97A.056, subdivision 1b. The amount necessary to
         make <br/>
<a id="pl.117.29"></a><var>117.29</var>the payment required under Minnesota Statutes, section 97A.056, subdivision 1b, for
         all <br/>
<a id="pl.117.30"></a><var>117.30</var>fiscal year 2018 appropriations for land purchases must be deposited in the outdoor
         heritage <br/>
<a id="pl.117.31"></a><var>117.31</var>trust fund payment account by August 1, 2018, or the restriction on land acquisition
         under <br/>
<a id="pl.117.32"></a><var>117.32</var>Minnesota Statutes, section 97A.056, subdivision 15a, applies to any land acquisition
         <br/>
<a id="pl.117.33"></a><var>117.33</var>authorized with fiscal year 2018 funds that have not yet been acquired.<br/>
<a id="pl.118.1"></a><var>118.1</var>(b) Notwithstanding Minnesota Statutes, section 116P.045, subdivision 5, the state
         may <br/>
<a id="pl.118.2"></a><var>118.2</var>appropriate money in fiscal year 2018 from the environment and natural resources trust
         <br/>
<a id="pl.118.3"></a><var>118.3</var>fund to purchase land without appropriating sufficient funds to cover the onetime
         trust fund <br/>
<a id="pl.118.4"></a><var>118.4</var>payment required under Minnesota Statutes, section 116P.045, subdivision 2. The amount
         <br/>
<a id="pl.118.5"></a><var>118.5</var>necessary to make the payment required under Minnesota Statutes, section 116P.045,
         <br/>
<a id="pl.118.6"></a><var>118.6</var>subdivision 2, for all fiscal year 2018 appropriations for land purchases must be
         deposited <br/>
<a id="pl.118.7"></a><var>118.7</var>in the environment and natural resources trust fund payment account by August 1, 2018,
         or <br/>
<a id="pl.118.8"></a><var>118.8</var>the restriction on land acquisition under Minnesota Statutes, section 116P.045, subdivision
         <br/>
<a id="pl.118.9"></a><var>118.9</var>5, applies to any land acquisition authorized with fiscal year 2018 funds that have
         not yet <br/>
<a id="pl.118.10"></a><var>118.10</var>been acquired.<br/>
<a id="pl.118.11"></a><var>118.11</var><b>EFFECTIVE DATE.</b>This section is effective the day following final enactment.<br/>
<br/>
<a id="bill.5.0.0"></a>

<a id="bill.5.1.0"></a><a id="pl.118.14"></a><var>118.14</var>    Section 1. Minnesota Statutes 2016, section 469.174, subdivision 12, is amended to read:<br/>
<a id="pl.118.15"></a><var>118.15</var>    Subd. 12. <b>Economic development district.</b> "Economic development district" means a <br/>
<a id="pl.118.16"></a><var>118.16</var>type of tax increment financing district which consists of any project, or portions
         of a project, <br/>
<a id="pl.118.17"></a><var>118.17</var>which the authority finds to be in the public interest because:<br/>
<a id="pl.118.18"></a><var>118.18</var>(1) it will discourage commerce, industry, or manufacturing from moving their operations
         <br/>
<a id="pl.118.19"></a><var>118.19</var>to another state or municipality; or<br/>
<a id="pl.118.20"></a><var>118.20</var>(2) it will result in increased employment in the state; or<br/>
<a id="pl.118.21"></a><var>118.21</var>(3) it will result in preservation and enhancement of the tax base of the state; or<br/>
<a id="pl.118.22"></a><var>118.22</var>(4) it satisfies the requirements of a workforce housing project under section 469.176,
         <br/>
<a id="pl.118.23"></a><var>118.23</var>subdivision 4c, paragraph (d).<br/>
<a id="pl.118.24"></a><var>118.24</var><b>EFFECTIVE DATE.</b>This section is effective for districts for which the request for <br/>
<a id="pl.118.25"></a><var>118.25</var>certification was made after June 30, 2017.<br/>
<br/>
<a id="bill.5.2.0"></a><a id="pl.118.26"></a><var>118.26</var>    Sec. 2. Minnesota Statutes 2016, section 469.175, subdivision 3, is amended to read:<br/>
<a id="pl.118.27"></a><var>118.27</var>    Subd. 3. <b>Municipality approval.</b> (a) A county auditor shall not certify the original net <br/>
<a id="pl.118.28"></a><var>118.28</var>tax capacity of a tax increment financing district until the tax increment financing
         plan <br/>
<a id="pl.118.29"></a><var>118.29</var>proposed for that district has been approved by the municipality in which the district
         is <br/>
<a id="pl.118.30"></a><var>118.30</var>located. If an authority that proposes to establish a tax increment financing district
         and the <br/>
<a id="pl.118.31"></a><var>118.31</var>municipality are not the same, the authority shall apply to the municipality in which
         the <br/>
<a id="pl.119.1"></a><var>119.1</var>district is proposed to be located and shall obtain the approval of its tax increment
         financing <br/>
<a id="pl.119.2"></a><var>119.2</var>plan by the municipality before the authority may use tax increment financing. The
         <br/>
<a id="pl.119.3"></a><var>119.3</var>municipality shall approve the tax increment financing plan only after a public hearing
         <br/>
<a id="pl.119.4"></a><var>119.4</var>thereon after published notice in a newspaper of general circulation in the municipality
         at <br/>
<a id="pl.119.5"></a><var>119.5</var>least once not less than ten days nor more than 30 days prior to the date of the hearing.
         The <br/>
<a id="pl.119.6"></a><var>119.6</var>published notice must include a map of the area of the district from which increments
         may <br/>
<a id="pl.119.7"></a><var>119.7</var>be collected and, if the project area includes additional area, a map of the project
         area in <br/>
<a id="pl.119.8"></a><var>119.8</var>which the increments may be expended. The hearing may be held before or after the
         approval <br/>
<a id="pl.119.9"></a><var>119.9</var>or creation of the project or it may be held in conjunction with a hearing to approve
         the <br/>
<a id="pl.119.10"></a><var>119.10</var>project.<br/>
<a id="pl.119.11"></a><var>119.11</var>    (b) Before or at the time of approval of the tax increment financing plan, the municipality
         <br/>
<a id="pl.119.12"></a><var>119.12</var>shall make the following findings, and shall set forth in writing the reasons and
         supporting <br/>
<a id="pl.119.13"></a><var>119.13</var>facts for each determination:<br/>
<a id="pl.119.14"></a><var>119.14</var>    (1) that the proposed tax increment financing district is a redevelopment district,
         a <br/>
<a id="pl.119.15"></a><var>119.15</var>renewal or renovation district, a housing district, a soils condition district, or
         an economic <br/>
<a id="pl.119.16"></a><var>119.16</var>development district; if the proposed district is a redevelopment district or a renewal
         or <br/>
<a id="pl.119.17"></a><var>119.17</var>renovation district, the reasons and supporting facts for the determination that the
         district <br/>
<a id="pl.119.18"></a><var>119.18</var>meets the criteria of section 
         <statute_ref>469.174, subdivision 10</statute_ref>, paragraph (a), clauses (1) and (2), or <br/>
<a id="pl.119.19"></a><var>119.19</var>subdivision 10a, must be documented in writing and retained and made available to
         the <br/>
<a id="pl.119.20"></a><var>119.20</var>public by the authority until the district has been terminated;<br/>
<a id="pl.119.21"></a><var>119.21</var>    (2) that, in the opinion of the municipality:<br/>
<a id="pl.119.22"></a><var>119.22</var>    (i) the proposed development or redevelopment would not reasonably be expected to
         <br/>
<a id="pl.119.23"></a><var>119.23</var>occur solely through private investment within the reasonably foreseeable future;
         and<br/>
<a id="pl.119.24"></a><var>119.24</var>    (ii) the increased market value of the site that could reasonably be expected to occur
         <br/>
<a id="pl.119.25"></a><var>119.25</var>without the use of tax increment financing would be less than the increase in the
         market <br/>
<a id="pl.119.26"></a><var>119.26</var>value estimated to result from the proposed development after subtracting the present
         value <br/>
<a id="pl.119.27"></a><var>119.27</var>of the projected tax increments for the maximum duration of the district permitted
         by the <br/>
<a id="pl.119.28"></a><var>119.28</var>plan. The requirements of this item do not apply if the district is a housing district;<br/>
<a id="pl.119.29"></a><var>119.29</var>    (3) that the tax increment financing plan conforms to the general plan for the development
         <br/>
<a id="pl.119.30"></a><var>119.30</var>or redevelopment of the municipality as a whole;<br/>
<a id="pl.119.31"></a><var>119.31</var>    (4) that the tax increment financing plan will afford maximum opportunity, consistent
         <br/>
<a id="pl.119.32"></a><var>119.32</var>with the sound needs of the municipality as a whole, for the development or redevelopment
         <br/>
<a id="pl.119.33"></a><var>119.33</var>of the project by private enterprise;<br/>
<a id="pl.120.1"></a><var>120.1</var>    (5) that the municipality elects the method of tax increment computation set forth
         in <br/>
<a id="pl.120.2"></a><var>120.2</var>section 
         <statute_ref>469.177, subdivision 3, paragraph (b)</statute_ref>, if applicable.<br/>
<a id="pl.120.3"></a><var>120.3</var>    (c) When the municipality and the authority are not the same, the municipality shall
         <br/>
<a id="pl.120.4"></a><var>120.4</var>approve or disapprove the tax increment financing plan within 60 days of submission
         by <br/>
<a id="pl.120.5"></a><var>120.5</var>the authority. When the municipality and the authority are not the same, the municipality
         <br/>
<a id="pl.120.6"></a><var>120.6</var>may not amend or modify a tax increment financing plan except as proposed by the authority
         <br/>
<a id="pl.120.7"></a><var>120.7</var>pursuant to subdivision 4. Once approved, the determination of the authority to undertake
         <br/>
<a id="pl.120.8"></a><var>120.8</var>the project through the use of tax increment financing and the resolution of the governing
         <br/>
<a id="pl.120.9"></a><var>120.9</var>body shall be conclusive of the findings therein and of the public need for the financing.<br/>
<a id="pl.120.10"></a><var>120.10</var>    (d) For a district that is subject to the requirements of paragraph (b), clause (2),
         item <br/>
<a id="pl.120.11"></a><var>120.11</var>(ii), the municipality's statement of reasons and supporting facts must include all
         of the <br/>
<a id="pl.120.12"></a><var>120.12</var>following:<br/>
<a id="pl.120.13"></a><var>120.13</var>    (1) an estimate of the amount by which the market value of the site will increase
         without <br/>
<a id="pl.120.14"></a><var>120.14</var>the use of tax increment financing;<br/>
<a id="pl.120.15"></a><var>120.15</var>    (2) an estimate of the increase in the market value that will result from the development
         <br/>
<a id="pl.120.16"></a><var>120.16</var>or redevelopment to be assisted with tax increment financing; and<br/>
<a id="pl.120.17"></a><var>120.17</var>    (3) the present value of the projected tax increments for the maximum duration of
         the <br/>
<a id="pl.120.18"></a><var>120.18</var>district permitted by the tax increment financing plan.<br/>
<a id="pl.120.19"></a><var>120.19</var>    (e) For purposes of this subdivision, "site" means the parcels on which the development
         <br/>
<a id="pl.120.20"></a><var>120.20</var>or redevelopment to be assisted with tax increment financing will be located.<br/>
<a id="pl.120.21"></a><var>120.21</var>(f) Before or at the time of approval of the tax increment financing plan for a district
         to <br/>
<a id="pl.120.22"></a><var>120.22</var>be used to fund a workforce housing project under section 469.176, subdivision 4c,
         paragraph <br/>
<a id="pl.120.23"></a><var>120.23</var>(d), the municipality shall make the following findings and set forth in writing the
         reasons <br/>
<a id="pl.120.24"></a><var>120.24</var>and supporting facts for each determination:<br/>
<a id="pl.120.25"></a><var>120.25</var>(1) the city is located outside of the metropolitan area, as defined in section 473.121,
         <br/>
<a id="pl.120.26"></a><var>120.26</var>subdivision 2;<br/>
<a id="pl.120.27"></a><var>120.27</var>(2) the average vacancy rate for rental housing located in the municipality and in
         any <br/>
<a id="pl.120.28"></a><var>120.28</var>statutory or home rule charter city located within 15 miles or less of the boundaries
         of the <br/>
<a id="pl.120.29"></a><var>120.29</var>municipality has been three percent or less for at least the immediately preceding
         two-year <br/>
<a id="pl.120.30"></a><var>120.30</var>period;<br/>
<a id="pl.120.31"></a><var>120.31</var>(3) at least one business located in the municipality or within 15 miles of the municipality
         <br/>
<a id="pl.120.32"></a><var>120.32</var>that employs a minimum of 20 full-time equivalent employees in aggregate has provided
         a <br/>
<a id="pl.121.1"></a><var>121.1</var>written statement to the municipality indicating that the lack of available rental
         housing has <br/>
<a id="pl.121.2"></a><var>121.2</var>impeded the ability of the business to recruit and hire employees; and<br/>
<a id="pl.121.3"></a><var>121.3</var>(4) the municipality and the development authority intend to use increments from the
         <br/>
<a id="pl.121.4"></a><var>121.4</var>district for the development of rental housing to serve employees of businesses located
         in <br/>
<a id="pl.121.5"></a><var>121.5</var>the municipality or surrounding area.<br/>
<a id="pl.121.6"></a><var>121.6</var><b>EFFECTIVE DATE.</b>This section is effective for districts for which the request for <br/>
<a id="pl.121.7"></a><var>121.7</var>certification was made after June 30, 2017.<br/>
<br/>
<a id="bill.5.3.0"></a><a id="pl.121.8"></a><var>121.8</var>    Sec. 3. Minnesota Statutes 2016, section 469.176, subdivision 4c, is amended to read:<br/>
<a id="pl.121.9"></a><var>121.9</var>    Subd. 4c. <b>Economic development districts.</b> (a) Revenue derived from tax increment <br/>
<a id="pl.121.10"></a><var>121.10</var>from an economic development district may not be used to provide improvements, loans,
         <br/>
<a id="pl.121.11"></a><var>121.11</var>subsidies, grants, interest rate subsidies, or assistance in any form to developments
         consisting <br/>
<a id="pl.121.12"></a><var>121.12</var>of buildings and ancillary facilities, if more than 15 percent of the buildings and
         facilities <br/>
<a id="pl.121.13"></a><var>121.13</var>(determined on the basis of square footage) are used for a purpose other than:<br/>
<a id="pl.121.14"></a><var>121.14</var>    (1) the manufacturing or production of tangible personal property, including processing
         <br/>
<a id="pl.121.15"></a><var>121.15</var>resulting in the change in condition of the property;<br/>
<a id="pl.121.16"></a><var>121.16</var>    (2) warehousing, storage, and distribution of tangible personal property, excluding
         retail <br/>
<a id="pl.121.17"></a><var>121.17</var>sales;<br/>
<a id="pl.121.18"></a><var>121.18</var>    (3) research and development related to the activities listed in clause (1) or (2);<br/>
<a id="pl.121.19"></a><var>121.19</var>    (4) telemarketing if that activity is the exclusive use of the property;<br/>
<a id="pl.121.20"></a><var>121.20</var>    (5) tourism facilities; or<br/>
<a id="pl.121.21"></a><var>121.21</var>    (6) space necessary for and related to the activities listed in clauses (1) to (5); or<br/>
<a id="pl.121.22"></a><var>121.22</var>    (7) a workforce housing project that satisfies the requirements of paragraph (d).<br/>
<a id="pl.121.23"></a><var>121.23</var>    (b) Notwithstanding the provisions of this subdivision, revenues derived from tax
         <br/>
<a id="pl.121.24"></a><var>121.24</var>increment from an economic development district may be used to provide improvements,
         <br/>
<a id="pl.121.25"></a><var>121.25</var>loans, subsidies, grants, interest rate subsidies, or assistance in any form for up
         to 15,000 <br/>
<a id="pl.121.26"></a><var>121.26</var>square feet of any separately owned commercial facility located within the municipal
         <br/>
<a id="pl.121.27"></a><var>121.27</var>jurisdiction of a small city, if the revenues derived from increments are spent only
         to assist <br/>
<a id="pl.121.28"></a><var>121.28</var>the facility directly or for administrative expenses, the assistance is necessary
         to develop <br/>
<a id="pl.121.29"></a><var>121.29</var>the facility, and all of the increments, except those for administrative expenses,
         are spent <br/>
<a id="pl.121.30"></a><var>121.30</var>only for activities within the district.<br/>
<a id="pl.122.1"></a><var>122.1</var>    (c) A city is a small city for purposes of this subdivision if the city was a small
         city in <br/>
<a id="pl.122.2"></a><var>122.2</var>the year in which the request for certification was made and applies for the rest
         of the <br/>
<a id="pl.122.3"></a><var>122.3</var>duration of the district, regardless of whether the city qualifies or ceases to qualify
         as a <br/>
<a id="pl.122.4"></a><var>122.4</var>small city.<br/>
<a id="pl.122.5"></a><var>122.5</var>(d) A project qualifies as a workforce housing project under this subdivision if:<br/>
<a id="pl.122.6"></a><var>122.6</var>(1) increments from the district are used exclusively to assist in the acquisition
         of <br/>
<a id="pl.122.7"></a><var>122.7</var>property; construction of improvements; and provision of loans or subsidies, grants,
         interest <br/>
<a id="pl.122.8"></a><var>122.8</var>rate subsidies, public infrastructure, and related financing costs for rental housing
         <br/>
<a id="pl.122.9"></a><var>122.9</var>developments in the municipality; and<br/>
<a id="pl.122.10"></a><var>122.10</var>(2) the governing body of the municipality made the findings for the project required
         <br/>
<a id="pl.122.11"></a><var>122.11</var>by section 469.175, subdivision 3, paragraph (f).<br/>
<a id="pl.122.12"></a><var>122.12</var><b>EFFECTIVE DATE.</b>This section is effective for districts for which the request for <br/>
<a id="pl.122.13"></a><var>122.13</var>certification was made after June 30, 2017.<br/>
<br/>
<a id="bill.5.4.0"></a><a id="pl.122.14"></a><var>122.14</var>    Sec. 4. Minnesota Statutes 2016, section 469.1761, is amended by adding a subdivision <br/>
<a id="pl.122.15"></a><var>122.15</var>to read:<br/>
<a id="pl.122.16"></a><var>122.16</var>    Subd. 5. <b>Income limits; Minnesota Housing Finance Agency challenge program.</b><br/>
<a id="pl.122.17"></a><var>122.17</var>For a project receiving a loan or grant from the Minnesota Housing Finance Agency
         challenge <br/>
<a id="pl.122.18"></a><var>122.18</var>program under section 462A.33, the income limits under section 462A.33 are substituted
         <br/>
<a id="pl.122.19"></a><var>122.19</var>for the applicable income limits for the project under subdivision 2 or 3.<br/>
<a id="pl.122.20"></a><var>122.20</var><b>EFFECTIVE DATE.</b>This section is effective for districts for which the request for <br/>
<a id="pl.122.21"></a><var>122.21</var>certification was made after June 30, 2017.<br/>
<br/>
<a id="bill.5.5.0"></a><a id="pl.122.22"></a><var>122.22</var>    Sec. 5. Minnesota Statutes 2016, section 469.1763, subdivision 1, is amended to read:<br/>
<a id="pl.122.23"></a><var>122.23</var>    Subdivision 1. <b>Definitions.</b> (a) For purposes of this section, the following terms have <br/>
<a id="pl.122.24"></a><var>122.24</var>the meanings given.<br/>
<a id="pl.122.25"></a><var>122.25</var>(b) "Activities" means acquisition of property, clearing of land, site preparation,
         soils <br/>
<a id="pl.122.26"></a><var>122.26</var>correction, removal of hazardous waste or pollution, installation of utilities, construction
         <br/>
<a id="pl.122.27"></a><var>122.27</var>of public or private improvements, and other similar activities, but only to the extent
         that <br/>
<a id="pl.122.28"></a><var>122.28</var>tax increment revenues may be spent for such purposes under other law.<br/>
<a id="pl.122.29"></a><var>122.29</var>(c) "Third party" means an entity other than (1) the person receiving the benefit
         of <br/>
<a id="pl.122.30"></a><var>122.30</var>assistance financed with tax increments, or (2) the municipality or the development
         authority <br/>
<a id="pl.122.31"></a><var>122.31</var>or other person substantially under the control of the municipality.<br/>
<a id="pl.123.1"></a><var>123.1</var>(d) "Revenues derived from tax increments paid by properties in the district" means
         only <br/>
<a id="pl.123.2"></a><var>123.2</var>tax increment as defined in section 
         <statute_ref>469.174, subdivision 25</statute_ref>, clause (1), and does not include <br/>
<a id="pl.123.3"></a><var>123.3</var>tax increment as defined in section 
         <statute_ref>469.174, subdivision 25</statute_ref>, clauses (2), (3), and (4) to (5).<br/>
<a id="pl.123.4"></a><var>123.4</var><b>EFFECTIVE DATE.</b>This section is effective the day following final enactment.<br/>
<br/>
<a id="bill.5.6.0"></a><a id="pl.123.5"></a><var>123.5</var>    Sec. 6. Minnesota Statutes 2016, section 469.1763, subdivision 2, is amended to read:<br/>
<a id="pl.123.6"></a><var>123.6</var>    Subd. 2. <b>Expenditures outside district.</b> (a) For each tax increment financing district, <br/>
<a id="pl.123.7"></a><var>123.7</var>an amount equal to at least 75 percent of the total revenue derived from tax increments
         paid <br/>
<a id="pl.123.8"></a><var>123.8</var>by properties in the district must be expended on activities in the district or to
         pay bonds, <br/>
<a id="pl.123.9"></a><var>123.9</var>to the extent that the proceeds of the bonds were used to finance activities in the
         district or <br/>
<a id="pl.123.10"></a><var>123.10</var>to pay, or secure payment of, debt service on credit enhanced bonds. For districts,
         other <br/>
<a id="pl.123.11"></a><var>123.11</var>than redevelopment districts for which the request for certification was made after
         June 30, <br/>
<a id="pl.123.12"></a><var>123.12</var>1995, the in-district percentage for purposes of the preceding sentence is 80 percent.
         Not <br/>
<a id="pl.123.13"></a><var>123.13</var>more than 25 percent of the total revenue derived from tax increments paid by properties
         <br/>
<a id="pl.123.14"></a><var>123.14</var>in the district may be expended, through a development fund or otherwise, on activities
         <br/>
<a id="pl.123.15"></a><var>123.15</var>outside of the district but within the defined geographic area of the project except
         to pay, <br/>
<a id="pl.123.16"></a><var>123.16</var>or secure payment of, debt service on credit enhanced bonds. For districts, other
         than <br/>
<a id="pl.123.17"></a><var>123.17</var>redevelopment districts for which the request for certification was made after June
         30, 1995, <br/>
<a id="pl.123.18"></a><var>123.18</var>the pooling percentage for purposes of the preceding sentence is 20 percent. The revenue <br/>
<a id="pl.123.19"></a><var>123.19</var>revenues derived from tax increments for paid by properties in the district that are expended <br/>
<a id="pl.123.20"></a><var>123.20</var>on costs under section 
         <statute_ref>469.176, subdivision 4h</statute_ref>, paragraph (b), may be deducted first before <br/>
<a id="pl.123.21"></a><var>123.21</var>calculating the percentages that must be expended within and without the district.<br/>
<a id="pl.123.22"></a><var>123.22</var>    (b) In the case of a housing district, a housing project, as defined in section 
         <statute_ref>469.174, <br/>
<a id="pl.123.23"></a><var>123.23</var>subdivision 11
         </statute_ref>, is an activity in the district.<br/>
<a id="pl.123.24"></a><var>123.24</var>    (c) All administrative expenses are for activities outside of the district, except
         that if the <br/>
<a id="pl.123.25"></a><var>123.25</var>only expenses for activities outside of the district under this subdivision are for
         the purposes <br/>
<a id="pl.123.26"></a><var>123.26</var>described in paragraph (d), administrative expenses will be considered as expenditures
         for <br/>
<a id="pl.123.27"></a><var>123.27</var>activities in the district.<br/>
<a id="pl.123.28"></a><var>123.28</var>    (d) The authority may elect, in the tax increment financing plan for the district,
         to increase <br/>
<a id="pl.123.29"></a><var>123.29</var>by up to ten percentage points the permitted amount of expenditures for activities
         located <br/>
<a id="pl.123.30"></a><var>123.30</var>outside the geographic area of the district under paragraph (a). As permitted by section
         <br/>
<statute_ref><a id="pl.123.31"></a><var>123.31</var>469.176, subdivision 4k
         </statute_ref>, the expenditures, including the permitted expenditures under <br/>
<a id="pl.123.32"></a><var>123.32</var>paragraph (a), need not be made within the geographic area of the project. Expenditures
         <br/>
<a id="pl.123.33"></a><var>123.33</var>that meet the requirements of this paragraph are legally permitted expenditures of
         the district, <br/>
<a id="pl.124.1"></a><var>124.1</var>notwithstanding section 
         <statute_ref>469.176, subdivisions 4b, 4c, and 4j</statute_ref>. To qualify for the increase <br/>
<a id="pl.124.2"></a><var>124.2</var>under this paragraph, the expenditures must:<br/>
<a id="pl.124.3"></a><var>124.3</var>    (1) be used exclusively to assist housing that meets the requirement for a qualified
         <br/>
<a id="pl.124.4"></a><var>124.4</var>low-income building, as that term is used in section 42 of the Internal Revenue Code;
         and<br/>
<a id="pl.124.5"></a><var>124.5</var>    (2) not exceed the qualified basis of the housing, as defined under section 42(c)
         of the <br/>
<a id="pl.124.6"></a><var>124.6</var>Internal Revenue Code, less the amount of any credit allowed under section 42 of the
         Internal <br/>
<a id="pl.124.7"></a><var>124.7</var>Revenue Code; and<br/>
<a id="pl.124.8"></a><var>124.8</var>    (3) be used to:<br/>
<a id="pl.124.9"></a><var>124.9</var>    (i) acquire and prepare the site of the housing;<br/>
<a id="pl.124.10"></a><var>124.10</var>    (ii) acquire, construct, or rehabilitate the housing; or<br/>
<a id="pl.124.11"></a><var>124.11</var>    (iii) make public improvements directly related to the housing; or<br/>
<a id="pl.124.12"></a><var>124.12</var>(4) be used to develop housing:<br/>
<a id="pl.124.13"></a><var>124.13</var>(i) if the market value of the housing does not exceed the lesser of:<br/>
<a id="pl.124.14"></a><var>124.14</var>(A) 150 percent of the average market value of single-family homes in that municipality;
         <br/>
<a id="pl.124.15"></a><var>124.15</var>or<br/>
<a id="pl.124.16"></a><var>124.16</var>(B) $200,000 for municipalities located in the metropolitan area, as defined in section
         <br/>
<statute_ref><a id="pl.124.17"></a><var>124.17</var>473.121
         </statute_ref>, or $125,000 for all other municipalities; and<br/>
<a id="pl.124.18"></a><var>124.18</var>(ii) if the expenditures are used to pay the cost of site acquisition, relocation,
         demolition <br/>
<a id="pl.124.19"></a><var>124.19</var>of existing structures, site preparation, and pollution abatement on one or more parcels,
         if <br/>
<a id="pl.124.20"></a><var>124.20</var>the parcel contains a residence containing one to four family dwelling units that
         has been <br/>
<a id="pl.124.21"></a><var>124.21</var>vacant for six or more months and is in foreclosure as defined in section 
         <statute_ref>325N.10, subdivision <br/>
<a id="pl.124.22"></a><var>124.22</var>7
         </statute_ref>, but without regard to whether the residence is the owner's principal residence,
         and only <br/>
<a id="pl.124.23"></a><var>124.23</var>after the redemption period has expired.<br/>
<a id="pl.124.24"></a><var>124.24</var>(e) The authority under paragraph (d), clause (4), expires on December 31, 2016. <br/>
<a id="pl.124.25"></a><var>124.25</var>Increments may continue to be expended under this authority after that date, if they
         are used <br/>
<a id="pl.124.26"></a><var>124.26</var>to pay bonds or binding contracts that would qualify under subdivision 3, paragraph
         (a), if <br/>
<a id="pl.124.27"></a><var>124.27</var>December 31, 2016, is considered to be the last date of the five-year period after
         certification <br/>
<a id="pl.124.28"></a><var>124.28</var>under that provision.<br/>
<a id="pl.124.29"></a><var>124.29</var><b>EFFECTIVE DATE.</b>This section is effective the day following final enactment.<br/>
<br/>
<a id="bill.5.7.0"></a><a id="pl.125.1"></a><var>125.1</var>    Sec. 7. Minnesota Statutes 2016, section 469.1763, subdivision 3, is amended to read:<br/>
<a id="pl.125.2"></a><var>125.2</var>    Subd. 3. <b>Five-year rule.</b> (a) Revenues derived from tax increments paid by properties <br/>
<a id="pl.125.3"></a><var>125.3</var>in the district are considered to have been expended on an activity within the district under <br/>
<a id="pl.125.4"></a><var>125.4</var>subdivision 2 only if one of the following occurs:<br/>
<a id="pl.125.5"></a><var>125.5</var>(1) before or within five years after certification of the district, the revenues
         are actually <br/>
<a id="pl.125.6"></a><var>125.6</var>paid to a third party with respect to the activity;<br/>
<a id="pl.125.7"></a><var>125.7</var>(2) bonds, the proceeds of which must be used to finance the activity, are issued
         and <br/>
<a id="pl.125.8"></a><var>125.8</var>sold to a third party before or within five years after certification, the revenues
         are spent to <br/>
<a id="pl.125.9"></a><var>125.9</var>repay the bonds, and the proceeds of the bonds either are, on the date of issuance,
         reasonably <br/>
<a id="pl.125.10"></a><var>125.10</var>expected to be spent before the end of the later of (i) the five-year period, or (ii)
         a reasonable <br/>
<a id="pl.125.11"></a><var>125.11</var>temporary period within the meaning of the use of that term under section 148(c)(1)
         of the <br/>
<a id="pl.125.12"></a><var>125.12</var>Internal Revenue Code, or are deposited in a reasonably required reserve or replacement
         <br/>
<a id="pl.125.13"></a><var>125.13</var>fund;<br/>
<a id="pl.125.14"></a><var>125.14</var>(3) binding contracts with a third party are entered into for performance of the activity
         <br/>
<a id="pl.125.15"></a><var>125.15</var>before or within five years after certification of the district and the revenues are
         spent under <br/>
<a id="pl.125.16"></a><var>125.16</var>the contractual obligation;<br/>
<a id="pl.125.17"></a><var>125.17</var>(4) costs with respect to the activity are paid before or within five years after
         certification <br/>
<a id="pl.125.18"></a><var>125.18</var>of the district and the revenues are spent to reimburse a party for payment of the
         costs, <br/>
<a id="pl.125.19"></a><var>125.19</var>including interest on unreimbursed costs; or<br/>
<a id="pl.125.20"></a><var>125.20</var>(5) expenditures are made for housing purposes as permitted by subdivision 2, paragraphs
         <br/>
<a id="pl.125.21"></a><var>125.21</var>(b) and (d), or for public infrastructure purposes within a zone as permitted by subdivision
         <br/>
<a id="pl.125.22"></a><var>125.22</var>2, paragraph (e).<br/>
<a id="pl.125.23"></a><var>125.23</var>(b) For purposes of this subdivision, bonds include subsequent refunding bonds if
         the <br/>
<a id="pl.125.24"></a><var>125.24</var>original refunded bonds meet the requirements of paragraph (a), clause (2).<br/>
<a id="pl.125.25"></a><var>125.25</var>(c) For a redevelopment district or a renewal and renovation district certified after
         June <br/>
<a id="pl.125.26"></a><var>125.26</var>30, 2003, and before April 20, 2009, the five-year periods described in paragraph
         (a) are <br/>
<a id="pl.125.27"></a><var>125.27</var>extended to ten years after certification of the district. For a redevelopment district
         certified <br/>
<a id="pl.125.28"></a><var>125.28</var>after April 20, 2009, and before June 30, 2012, the five-year periods described in
         paragraph <br/>
<a id="pl.125.29"></a><var>125.29</var>(a) are extended to eight years after certification of the district. This extension
         is provided <br/>
<a id="pl.125.30"></a><var>125.30</var>primarily to accommodate delays in development activities due to unanticipated economic
         <br/>
<a id="pl.125.31"></a><var>125.31</var>circumstances.<br/>
<a id="pl.125.32"></a><var>125.32</var><b>EFFECTIVE DATE.</b>This section is effective the day following final enactment.<br/>
<br/>
<a id="bill.5.8.0"></a><a id="pl.126.1"></a><var>126.1</var>    Sec. 8. Minnesota Statutes 2016, section 469.178, subdivision 7, is amended to read:<br/>
<a id="pl.126.2"></a><var>126.2</var>    Subd. 7. <b>Interfund loans.</b> (a) The authority or municipality may advance or loan money <br/>
<a id="pl.126.3"></a><var>126.3</var>to finance expenditures under section 
         <statute_ref>469.176, subdivision 4</statute_ref>, from its general fund or any <br/>
<a id="pl.126.4"></a><var>126.4</var>other fund under which it has legal authority to do so.<br/>
<a id="pl.126.5"></a><var>126.5</var>    (b) Not later than 60 days after money is transferred, advanced, or spent, whichever
         is <br/>
<a id="pl.126.6"></a><var>126.6</var>earliest, the loan or advance must be authorized, by resolution of the governing body or of <br/>
<a id="pl.126.7"></a><var>126.7</var>the authority, whichever has jurisdiction over the fund from which the advance or
         loan is <br/>
<a id="pl.126.8"></a><var>126.8</var>authorized, before money is transferred, advanced, or spent, whichever is earliest.<br/>
<a id="pl.126.9"></a><var>126.9</var>    (c) The resolution may generally grant to the municipality or the authority the power to <br/>
<a id="pl.126.10"></a><var>126.10</var>make interfund loans under one or more tax increment financing plans or for one or
         more <br/>
<a id="pl.126.11"></a><var>126.11</var>districts. The resolution may be adopted before or after the adoption of the tax increment <br/>
<a id="pl.126.12"></a><var>126.12</var>financing plan or the creation of the tax increment financing district from which
         the advance <br/>
<a id="pl.126.13"></a><var>126.13</var>or loan is to be repaid.<br/>
<a id="pl.126.14"></a><var>126.14</var>    (d) The terms and conditions for repayment of the loan must be provided in writing and. <br/>
<a id="pl.126.15"></a><var>126.15</var>The written terms and conditions may be in any form, but must include, at a minimum, the <br/>
<a id="pl.126.16"></a><var>126.16</var>principal amount, the interest rate, and maximum term. Written terms may be modified or <br/>
<a id="pl.126.17"></a><var>126.17</var>amended in writing by the municipality or the authority before the latest decertification
         of <br/>
<a id="pl.126.18"></a><var>126.18</var>any tax increment financing district from which the interfund loan is to be repaid. The <br/>
<a id="pl.126.19"></a><var>126.19</var>maximum rate of interest permitted to be charged is limited to the greater of the
         rates <br/>
<a id="pl.126.20"></a><var>126.20</var>specified under section 
         <statute_ref>270C.40</statute_ref> or 
         <statute_ref>549.09 </statute_ref>as of the date the loan or advance is authorized, <br/>
<a id="pl.126.21"></a><var>126.21</var>unless the written agreement states that the maximum interest rate will fluctuate
         as the <br/>
<a id="pl.126.22"></a><var>126.22</var>interest rates specified under section 
         <statute_ref>270C.40</statute_ref> or 
         <statute_ref>549.09 </statute_ref>are from time to time adjusted. <br/>
<a id="pl.126.23"></a><var>126.23</var>Loans or advances may be structured as draw-down or line-of-credit obligations of
         the <br/>
<a id="pl.126.24"></a><var>126.24</var>lending fund.<br/>
<a id="pl.126.25"></a><var>126.25</var>    (e) The authority shall report in the annual report submitted under section 469.175,
         <br/>
<a id="pl.126.26"></a><var>126.26</var>subdivision 6:<br/>
<a id="pl.126.27"></a><var>126.27</var>    (1) the amount of any interfund loan or advance made in a calendar year; and<br/>
<a id="pl.126.28"></a><var>126.28</var>    (2) any amendment of an interfund loan or advance made in a calendar year.<br/>
<a id="pl.126.29"></a><var>126.29</var><b>EFFECTIVE DATE.</b>This section is effective the day following final enactment and <br/>
<a id="pl.126.30"></a><var>126.30</var>applies to all districts, regardless of when the request for certification was made.<br/>
<br/>
<a id="bill.5.9.0"></a><a id="pl.127.1"></a><var>127.1</var>    Sec. 9. Laws 2008, chapter 154, article 9, section 21, subdivision 2, is amended to read:<br/>
<a id="pl.127.2"></a><var>127.2</var>    Subd. 2. <b>Special rules.</b> (a) If the city elects, upon the adoption of the tax increment <br/>
<a id="pl.127.3"></a><var>127.3</var>financing plan for a district, the rules under this section apply to a redevelopment
         district, <br/>
<a id="pl.127.4"></a><var>127.4</var>renewal and renovation district, economic development district, soil condition district, or <br/>
<a id="pl.127.5"></a><var>127.5</var>a soil deficiency district established by the city or a development authority of the
         city in the <br/>
<a id="pl.127.6"></a><var>127.6</var>project area.<br/>
<a id="pl.127.7"></a><var>127.7</var>    (b) Prior to or upon the adoption of the first tax increment plan subject to the special
         <br/>
<a id="pl.127.8"></a><var>127.8</var>rules under this subdivision, the city must find by resolution that parcels consisting
         of at <br/>
<a id="pl.127.9"></a><var>127.9</var>least 80 percent of the acreage of the project area (excluding street and railroad
         right of <br/>
<a id="pl.127.10"></a><var>127.10</var>way) are characterized by one or more of the following conditions:<br/>
<a id="pl.127.11"></a><var>127.11</var>    (1) peat or other soils with geotechnical deficiencies that impair development of
         <br/>
<a id="pl.127.12"></a><var>127.12</var>residential or commercial buildings or infrastructure;<br/>
<a id="pl.127.13"></a><var>127.13</var>    (2) soils or terrain that requires substantial filling in order to permit the development
         of <br/>
<a id="pl.127.14"></a><var>127.14</var>commercial or residential buildings or infrastructure;<br/>
<a id="pl.127.15"></a><var>127.15</var>    (3) landfills, dumps, or similar deposits of municipal or private waste;<br/>
<a id="pl.127.16"></a><var>127.16</var>    (4) quarries or similar resource extraction sites;<br/>
<a id="pl.127.17"></a><var>127.17</var>    (5) floodway; and<br/>
<a id="pl.127.18"></a><var>127.18</var>    (6) substandard buildings within the meaning of Minnesota Statutes, section 
         <statute_ref>469.174, <br/>
<a id="pl.127.19"></a><var>127.19</var>subdivision 10
         </statute_ref>.<br/>
<a id="pl.127.20"></a><var>127.20</var>    (c) For the purposes of paragraph (b), clauses (1) through (5), a parcel is deemed
         to be <br/>
<a id="pl.127.21"></a><var>127.21</var>characterized by the relevant condition if at least 70 percent of the area of the
         parcel contains <br/>
<a id="pl.127.22"></a><var>127.22</var>the relevant condition. For the purposes of paragraph (b), clause (6), a parcel is
         deemed to <br/>
<a id="pl.127.23"></a><var>127.23</var>be characterized by substandard buildings if the buildings occupy at least 30 percent
         of the <br/>
<a id="pl.127.24"></a><var>127.24</var>area of the parcel.<br/>
<a id="pl.127.25"></a><var>127.25</var>    (d) The five-year rule under Minnesota Statutes, section 
         <statute_ref>469.1763, subdivision 3</statute_ref>, is <br/>
<a id="pl.127.26"></a><var>127.26</var>extended to ten years for any district, and section 
         <statute_ref>469.1763, subdivision 4</statute_ref>, does not apply <br/>
<a id="pl.127.27"></a><var>127.27</var>to any district.<br/>
<a id="pl.127.28"></a><var>127.28</var>    (e) Notwithstanding anything to the contrary in section 
         <statute_ref>469.1763, subdivision 2</statute_ref>, paragraph <br/>
<a id="pl.127.29"></a><var>127.29</var>(a), not more than 80 percent of the total revenue derived from tax increments paid
         by <br/>
<a id="pl.127.30"></a><var>127.30</var>properties in any district (measured over the life of the district) may be expended
         on activities <br/>
<a id="pl.127.31"></a><var>127.31</var>outside the district but within the project area.<br/>
<a id="pl.127.32"></a><var>127.32</var>    (f) For a soil deficiency district:<br/>
<a id="pl.128.1"></a><var>128.1</var>    (1) increments may be collected through 20 years after the receipt by the authority
         of <br/>
<a id="pl.128.2"></a><var>128.2</var>the first increment from the district; and<br/>
<a id="pl.128.3"></a><var>128.3</var>    (2) except as otherwise provided in this subdivision, increments may be used only
         to:<br/>
<a id="pl.128.4"></a><var>128.4</var>    (i) acquire parcels on which the improvements described in item (ii) will occur;<br/>
<a id="pl.128.5"></a><var>128.5</var>    (ii) pay for the cost of correcting the unusual terrain or soil deficiencies and the
         additional <br/>
<a id="pl.128.6"></a><var>128.6</var>cost of installing public improvements directly caused by the deficiencies; and<br/>
<a id="pl.128.7"></a><var>128.7</var>    (iii) pay for the administrative expenses of the authority allocable to the district.<br/>
<a id="pl.128.8"></a><var>128.8</var>    (g) Increments spent for any infrastructure costs, whether inside a district or outside
         a <br/>
<a id="pl.128.9"></a><var>128.9</var>district but within the project area, are deemed to satisfy the requirements of paragraph
         (f) <br/>
<a id="pl.128.10"></a><var>128.10</var>and Minnesota Statutes, section 
         <statute_ref>469.176, subdivisions 4b</statute_ref>, 4c, and 4j.<br/>
<a id="pl.128.11"></a><var>128.11</var>    (h) Increments from any district may not be used to pay the costs of landfill closure
         or <br/>
<a id="pl.128.12"></a><var>128.12</var>public infrastructure located on the following parcels within the plat known as Burnsville
         <br/>
<a id="pl.128.13"></a><var>128.13</var>Amphitheater: Lot 1, Block 1; Lots 1 and 2, Block 2; and Outlots A, B, C and D.<br/>
<a id="pl.128.14"></a><var>128.14</var>    (i) The four-year rule under Minnesota Statutes, section 469.176, subdivision 6, is <br/>
<a id="pl.128.15"></a><var>128.15</var>extended to nine years.<br/>
<a id="pl.128.16"></a><var>128.16</var>    (j) The city may specify in the tax increment financing plan for any district the
         first year <br/>
<a id="pl.128.17"></a><var>128.17</var>in which it elects to receive increment, which may be up to eight years following
         approval <br/>
<a id="pl.128.18"></a><var>128.18</var>of the district.<br/>
<a id="pl.128.19"></a><var>128.19</var>    (k) Notwithstanding Minnesota Statutes, section 469.176, subdivision 1b, paragraph
         (c), <br/>
<a id="pl.128.20"></a><var>128.20</var>the city may waive any increment received in 2017 and, if so, it shall not be used
         in <br/>
<a id="pl.128.21"></a><var>128.21</var>determining the duration limit for any district created under this section.<br/>
<a id="pl.128.22"></a><var>128.22</var>    (l) The authority to approve tax increment financing plans to establish tax increment
         <br/>
<a id="pl.128.23"></a><var>128.23</var>financing districts under this section expires on December 31, 2018 March 20, 2023.<br/>
<a id="pl.128.24"></a><var>128.24</var><b>EFFECTIVE DATE.</b>This section is effective upon approval by the governing body <br/>
<a id="pl.128.25"></a><var>128.25</var>of the city of Burnsville and compliance with the requirements of Minnesota Statutes,
         section <br/>
<a id="pl.128.26"></a><var>128.26</var>645.021.<br/>
<br/>
<a id="bill.5.10.0"></a><a id="pl.128.27"></a><var>128.27</var>    Sec. 10. Laws 2009, chapter 88, article 5, section 17, as amended by Laws 2010, chapter <br/>
<a id="pl.128.28"></a><var>128.28</var>382, section 84, is amended to read:<br/>
<a id="pl.128.29"></a><var>128.29</var>    Sec. 17. <b>SEAWAY PORT AUTHORITY OF DULUTH; TAX INCREMENT </b><br/>
<a id="pl.128.30"></a><var>128.30</var><b>FINANCING DISTRICT; SPECIAL RULES.</b><br/>
<a id="pl.129.1"></a><var>129.1</var>(a) If the Seaway Port Authority of Duluth adopts a tax increment financing plan and
         <br/>
<a id="pl.129.2"></a><var>129.2</var>the governing body of the city of Duluth approves the plan for the tax increment financing
         <br/>
<a id="pl.129.3"></a><var>129.3</var>district consisting of one or more parcels identified as: 010-2730-00010; 010-2730-00020;
         <br/>
<a id="pl.129.4"></a><var>129.4</var>010-2730-00040; 010-2730-00050; 010-2730-00070; 010-2730-00080; 010-2730-00090; <br/>
<a id="pl.129.5"></a><var>129.5</var>010-2730-00100; 010-02730-00120; 010-02730-00130; 010-02730-00140; 010-2730-00160; <br/>
<a id="pl.129.6"></a><var>129.6</var>010-2730-00180; 010-2730-00200; 010-2730-00300; 010-02730-00320;  010-2746-01250; <br/>
<a id="pl.129.7"></a><var>129.7</var>010-2746-1330; 010-2746-01340; 010-2746-01350; 010-2746-1440; 010-2746-1380; <br/>
<a id="pl.129.8"></a><var>129.8</var>010-2746-01490; 010-2746-01500; 010-2746-01510; 010-2746-01520; 010-2746-01530; <br/>
<a id="pl.129.9"></a><var>129.9</var>010-2746-01540; 010-2746-01550; 010-2746-01560; 010-2746-01570; 010-2746-01580; <br/>
<a id="pl.129.10"></a><var>129.10</var>010-2746-01590; 010-3300-4560; 010-3300-4565; 010-3300-04570; 010-3300-04580; <br/>
<a id="pl.129.11"></a><var>129.11</var>010-3300-04640; 010-3300-04645; and 010-3300-04650, the five-year rule under Minnesota
         <br/>
<a id="pl.129.12"></a><var>129.12</var>Statutes, section 
         <statute_ref>469.1763, subdivision 3</statute_ref>, that activities must be undertaken within a five-year <br/>
<a id="pl.129.13"></a><var>129.13</var>period from the date of certification of the tax increment financing district, must
         be <br/>
<a id="pl.129.14"></a><var>129.14</var>considered to be met if the activities are undertaken within five years after the
         date all <br/>
<a id="pl.129.15"></a><var>129.15</var>qualifying parcels are delisted from the Federal Superfund list.<br/>
<a id="pl.129.16"></a><var>129.16</var>(b) The requirements of Minnesota Statutes, section 
         <statute_ref>469.1763, subdivision 4</statute_ref>, beginning <br/>
<a id="pl.129.17"></a><var>129.17</var>in the sixth year following certification of the district requirement, will begin
         in the sixth <br/>
<a id="pl.129.18"></a><var>129.18</var>year following the date all qualifying parcels are delisted from the Federal Superfund
         list.<br/>
<a id="pl.129.19"></a><var>129.19</var>(c) The action required under Minnesota Statutes, section 
         <statute_ref>469.176</statute_ref>, subdivision 6, are <br/>
<a id="pl.129.20"></a><var>129.20</var>satisfied if the action is commenced within four years after the date all qualifying
         parcels <br/>
<a id="pl.129.21"></a><var>129.21</var>are delisted from the Federal Superfund list and evidence of the action required is
         submitted <br/>
<a id="pl.129.22"></a><var>129.22</var>to the county auditor by February 1 of the fifth year following the year in which
         all qualifying <br/>
<a id="pl.129.23"></a><var>129.23</var>parcels are delisted from the Federal Superfund list.<br/>
<a id="pl.129.24"></a><var>129.24</var>(d) For purposes of this section, "qualifying parcels" means United States Steel parcels
         <br/>
<a id="pl.129.25"></a><var>129.25</var>listed in paragraph (a) and shown by the Minnesota Pollution Control Agency as part
         of the <br/>
<a id="pl.129.26"></a><var>129.26</var>USS St. Louis River-U.S. Steel Superfund Site (USEPA OU 02) that are included in the <br/>
<a id="pl.129.27"></a><var>129.27</var>tax increment financing district.<br/>
<a id="pl.129.28"></a><var>129.28</var>(e) In addition to the reporting requirements of Minnesota Statutes, section 
         <statute_ref>469.175, <br/>
<a id="pl.129.29"></a><var>129.29</var>subdivision 5
         </statute_ref>, the Seaway Port Authority of Duluth shall report the status of all parcels <br/>
<a id="pl.129.30"></a><var>129.30</var>listed in paragraph (a) and shown as part of the USS St. Louis River-U.S. Steel Superfund <br/>
<a id="pl.129.31"></a><var>129.31</var>Site (USEPA OU 02). The status report must show the parcel numbers, the listed or
         delisted <br/>
<a id="pl.129.32"></a><var>129.32</var>status, and if delisted, the delisting date.<br/>
<a id="pl.129.33"></a><var>129.33</var>(f) Notwithstanding Minnesota Statutes, section 469.178, subdivision 7, or any other
         <br/>
<a id="pl.129.34"></a><var>129.34</var>law to the contrary, the Seaway Port Authority of Duluth may establish an interfund
         loan <br/>
<a id="pl.130.1"></a><var>130.1</var>program before approval of the tax increment financing plan for or the establishment
         of the <br/>
<a id="pl.130.2"></a><var>130.2</var>district authorized by this section. The authority may make loans under this program.
         The <br/>
<a id="pl.130.3"></a><var>130.3</var>proceeds of the loans may be used for any permitted use of increments under this law
         or <br/>
<a id="pl.130.4"></a><var>130.4</var>Minnesota Statutes, section  469.176, for the district and may be repaid with increments
         <br/>
<a id="pl.130.5"></a><var>130.5</var>from the district established under this section. This paragraph applies to any action
         <br/>
<a id="pl.130.6"></a><var>130.6</var>authorized by the Seaway Port Authority of Duluth on or after March 25, 2010.<br/>
<a id="pl.130.7"></a><var>130.7</var><b>EFFECTIVE DATE.</b>This section is effective the day after the governing body of the <br/>
<a id="pl.130.8"></a><var>130.8</var>city of Duluth and its chief clerical officer comply with Minnesota Statutes, section
         645.021, <br/>
<a id="pl.130.9"></a><var>130.9</var>subdivision 3.<br/>
<br/>
<a id="bill.5.11.0"></a><a id="pl.130.10"></a><var>130.10</var>    Sec. 11. Laws 2014, chapter 308, article 6, section 8, subdivision 1, is amended to read:<br/>
<a id="pl.130.11"></a><var>130.11</var>    Subdivision 1. <b>Authority to create districts.</b> (a) The governing body of the city of <br/>
<a id="pl.130.12"></a><var>130.12</var>Edina or its development authority may establish one or more tax increment financing
         <br/>
<a id="pl.130.13"></a><var>130.13</var>housing districts in the Southeast Edina Redevelopment Project Area, as the boundaries
         <br/>
<a id="pl.130.14"></a><var>130.14</var>exist on March 31, 2014.<br/>
<a id="pl.130.15"></a><var>130.15</var>(b) The authority to request certification of districts under this section expires
         on June <br/>
<a id="pl.130.16"></a><var>130.16</var>30, 2017 2020.<br/>
<a id="pl.130.17"></a><var>130.17</var><b>EFFECTIVE DATE.</b>This section is effective on the day following final enactment <br/>
<a id="pl.130.18"></a><var>130.18</var>without local approval under Minnesota Statutes, section 645.023, subdivision 1, paragraph
         <br/>
<a id="pl.130.19"></a><var>130.19</var>(a).<br/>
<br/>
<a id="bill.5.12.0"></a><a id="pl.130.20"></a><var>130.20</var>    Sec. 12. Laws 2014, chapter 308, article 6, section 9, is amended to read:<br/>
<a id="pl.130.21"></a><var>130.21</var>    Sec. 9. <b>CITY OF MAPLE GROVE; TAX INCREMENT FINANCING DISTRICT.</b><br/>
<a id="pl.130.22"></a><var>130.22</var>    Subdivision 1. <b>Definitions.</b> (a) For the purposes of this section, the following terms have <br/>
<a id="pl.130.23"></a><var>130.23</var>the meanings given them.<br/>
<a id="pl.130.24"></a><var>130.24</var>(b) "City" means the city of Maple Grove.<br/>
<a id="pl.130.25"></a><var>130.25</var>(c) "Project area" means all or a portion of the area in the city commencing at a point <br/>
<a id="pl.130.26"></a><var>130.26</var>130 feet East and 120 feet North of the southwest corner of the Southeast Quarter
         of Section <br/>
<a id="pl.130.27"></a><var>130.27</var>23, Township 119, Range 22, Hennepin County, said point being on the easterly right-of-way
         <br/>
<a id="pl.130.28"></a><var>130.28</var>line of Hemlock Lane; thence northerly along said easterly right-of-way line of Hemlock
         <br/>
<a id="pl.130.29"></a><var>130.29</var>Lane to a point on the west line of the east one-half of the Southeast Quarter of
         section 23, <br/>
<a id="pl.130.30"></a><var>130.30</var>thence south along said west line a distance of 1,200 feet; thence easterly to the
         east line of <br/>
<a id="pl.130.31"></a><var>130.31</var>Section 23, 1,030 feet North from the southeast corner thereof; thence South 74 degrees
         <br/>
<a id="pl.130.32"></a><var>130.32</var>East 1,285 feet; thence East a distance of 1,000 feet; thence North 59 degrees West
         a distance <br/>
<a id="pl.131.1"></a><var>131.1</var>of 650 feet; thence northerly to a point on the northerly right-of-way line of 81st
         Avenue <br/>
<a id="pl.131.2"></a><var>131.2</var>North, 650 feet westerly measured at right angles, from the east line of the Northwest
         Quarter <br/>
<a id="pl.131.3"></a><var>131.3</var>of Section 24; thence North 13 degrees West a distance of 795 feet; thence West to
         the west <br/>
<a id="pl.131.4"></a><var>131.4</var>line of the Southeast Quarter of the Northwest Quarter of Section 24; thence North
         55 <br/>
<a id="pl.131.5"></a><var>131.5</var>degrees West to the south line of the Northwest Quarter of the Northwest Quarter of
         Section <br/>
<a id="pl.131.6"></a><var>131.6</var>24; thence West along said south line to the east right-of-way line of Zachary Lane;
         thence <br/>
<a id="pl.131.7"></a><var>131.7</var>North along the east right-of-way line of Zachary Lane to the southwest corner of
         Lot 1, <br/>
<a id="pl.131.8"></a><var>131.8</var>Block 1, Metropolitan Industrial Park 5th Addition; thence East along the south line
         of said <br/>
<a id="pl.131.9"></a><var>131.9</var>Lot 1 to the northeast corner of Outlot A, Metropolitan Industrial Park 5th Addition;
         thence <br/>
<a id="pl.131.10"></a><var>131.10</var>South along the east line of said Outlot A and its southerly extension to the south
         right-of-way <br/>
<a id="pl.131.11"></a><var>131.11</var>line of County State-Aid Highway (CSAH) 109; thence easterly along the south right-of-way
         <br/>
<a id="pl.131.12"></a><var>131.12</var>line of CSAH 109 to the east line of the Northwest Quarter of the Northeast Quarter
         of <br/>
<a id="pl.131.13"></a><var>131.13</var>Section 24; thence South along said east line to the north line of the South Half
         of the <br/>
<a id="pl.131.14"></a><var>131.14</var>Northeast Quarter of Section 24; thence East along said north line to the westerly
         right-of-way <br/>
<a id="pl.131.15"></a><var>131.15</var>line of Jefferson Highway North; thence southerly along the westerly right-of-way
         line of <br/>
<a id="pl.131.16"></a><var>131.16</var>Jefferson Highway to the centerline of CSAH 130; thence continuing South along the
         west <br/>
<a id="pl.131.17"></a><var>131.17</var>right-of-way line of Pilgrim Lane North to the westerly extension of the north line
         of Outlot <br/>
<a id="pl.131.18"></a><var>131.18</var>A, Park North Fourth Addition; thence easterly along the north line of Outlot A, Park
         North <br/>
<a id="pl.131.19"></a><var>131.19</var>Fourth Addition to the northeast corner of said Outlot A; thence southerly along the
         east <br/>
<a id="pl.131.20"></a><var>131.20</var>line of said Outlot A to the southeast corner of said Outlot A; thence easterly along
         the south <br/>
<a id="pl.131.21"></a><var>131.21</var>line of Lot 1, Block 1, Park North Fourth Addition to the westerly right-of-way line
         of State <br/>
<a id="pl.131.22"></a><var>131.22</var>Highway 169; thence southerly, southwesterly, westerly, and northwesterly along the
         <br/>
<a id="pl.131.23"></a><var>131.23</var>westerly right-of-way line of State Highway 169 and the northerly right-of-way line
         of <br/>
<a id="pl.131.24"></a><var>131.24</var>Interstate 694 to its intersection with the southerly extension of the easterly right-of-way
         <br/>
<a id="pl.131.25"></a><var>131.25</var>line of Zachary Lane North; thence northerly along the easterly right-of-way line
         of Zachary <br/>
<a id="pl.131.26"></a><var>131.26</var>Lane North and its northerly extension to the north right-of-way line of CSAH 130;
         thence <br/>
<a id="pl.131.27"></a><var>131.27</var>westerly, southerly, northerly, southwesterly, and northwesterly to the point of beginning
         <br/>
<a id="pl.131.28"></a><var>131.28</var>and there terminating, provided that the project area includes the rights-of-way for
         all present <br/>
<a id="pl.131.29"></a><var>131.29</var>and future highway interchanges abutting the area described in this paragraph, and may <br/>
<a id="pl.131.30"></a><var>131.30</var>include any additional property necessary to cause the property included in the tax
         increment <br/>
<a id="pl.131.31"></a><var>131.31</var>financing district to consist of complete parcels.<br/>
<a id="pl.131.32"></a><var>131.32</var>(d) "Soil deficiency district" means a type of tax increment financing district consisting
         <br/>
<a id="pl.131.33"></a><var>131.33</var>of a portion of the project area in which the city finds by resolution that the following
         <br/>
<a id="pl.131.34"></a><var>131.34</var>conditions exist:<br/>
<a id="pl.132.1"></a><var>132.1</var>(1) unusual terrain or soil deficiencies that occurred over 80 percent of the acreage
         in <br/>
<a id="pl.132.2"></a><var>132.2</var>the district require substantial filling, grading, or other physical preparation for
         use; and<br/>
<a id="pl.132.3"></a><var>132.3</var>(2) the estimated cost of the physical preparation under clause (1), but excluding
         costs <br/>
<a id="pl.132.4"></a><var>132.4</var>directly related to roads as defined in Minnesota Statutes, section 
         <statute_ref>160.01</statute_ref>, and local <br/>
<a id="pl.132.5"></a><var>132.5</var>improvements as described in Minnesota Statutes, sections 
         <statute_ref>429.021, subdivision 1</statute_ref>, clauses <br/>
<a id="pl.132.6"></a><var>132.6</var>(1) to (7), (11), and (12), and 
         <statute_ref>430.01</statute_ref>, exceeds the fair market value of the land before <br/>
<a id="pl.132.7"></a><var>132.7</var>completion of the preparation.<br/>
<a id="pl.132.8"></a><var>132.8</var>    Subd. 2. <b>Special rules.</b> (a) If the city elects, upon the adoption of the tax increment <br/>
<a id="pl.132.9"></a><var>132.9</var>financing plan for a district, the rules under this section apply to a redevelopment
         district, <br/>
<a id="pl.132.10"></a><var>132.10</var>renewal and renovation district, soil condition district, or soil deficiency district
         established <br/>
<a id="pl.132.11"></a><var>132.11</var>by the city or a development authority of the city in the project area.<br/>
<a id="pl.132.12"></a><var>132.12</var>(b) Prior to or upon the adoption of the first tax increment plan subject to the special
         <br/>
<a id="pl.132.13"></a><var>132.13</var>rules under this subdivision, the city must find by resolution that parcels consisting
         of at <br/>
<a id="pl.132.14"></a><var>132.14</var>least 80 percent of the acreage of the project area, excluding street and railroad
         rights-of-way, <br/>
<a id="pl.132.15"></a><var>132.15</var>are characterized by one or more of the following conditions:<br/>
<a id="pl.132.16"></a><var>132.16</var>(1) peat or other soils with geotechnical deficiencies that impair development of
         <br/>
<a id="pl.132.17"></a><var>132.17</var>commercial buildings or infrastructure;<br/>
<a id="pl.132.18"></a><var>132.18</var>(2) soils or terrain that require substantial filling in order to permit the development
         of <br/>
<a id="pl.132.19"></a><var>132.19</var>commercial buildings or infrastructure;<br/>
<a id="pl.132.20"></a><var>132.20</var>(3) landfills, dumps, or similar deposits of municipal or private waste;<br/>
<a id="pl.132.21"></a><var>132.21</var>(4) quarries or similar resource extraction sites;<br/>
<a id="pl.132.22"></a><var>132.22</var>(5) floodway; and<br/>
<a id="pl.132.23"></a><var>132.23</var>(6) substandard buildings, within the meaning of Minnesota Statutes, section 
         <statute_ref>469.174, <br/>
<a id="pl.132.24"></a><var>132.24</var>subdivision 10
         </statute_ref>.<br/>
<a id="pl.132.25"></a><var>132.25</var>(c) For the purposes of paragraph (b), clauses (1) to (5), a parcel is characterized
         by the <br/>
<a id="pl.132.26"></a><var>132.26</var>relevant condition if at least 70 percent of the area of the parcel contains the relevant
         <br/>
<a id="pl.132.27"></a><var>132.27</var>condition. For the purposes of paragraph (b), clause (6), a parcel is characterized
         by <br/>
<a id="pl.132.28"></a><var>132.28</var>substandard buildings if substandard buildings occupy at least 30 percent of the area
         of the <br/>
<a id="pl.132.29"></a><var>132.29</var>parcel.<br/>
<a id="pl.132.30"></a><var>132.30</var>(d) The five-year rule under Minnesota Statutes, section 
         <statute_ref>469.1763, subdivision 3</statute_ref>, is <br/>
<a id="pl.132.31"></a><var>132.31</var>extended to eight years for any district, and Minnesota Statutes, section 
         <statute_ref>469.1763, subdivision <br/>
<a id="pl.132.32"></a><var>132.32</var>4
         </statute_ref>, does not apply to any district.<br/>
<a id="pl.133.1"></a><var>133.1</var>(e) Notwithstanding any provision to the contrary in Minnesota Statutes, section 
         <statute_ref>469.1763, <br/>
<a id="pl.133.2"></a><var>133.2</var>subdivision 2
         </statute_ref>, paragraph (a), not more than 40 percent of the total revenue derived from tax <br/>
<a id="pl.133.3"></a><var>133.3</var>increments paid by properties in any district, measured over the life of the district,
         may be <br/>
<a id="pl.133.4"></a><var>133.4</var>expended on activities outside the district but within the project area.<br/>
<a id="pl.133.5"></a><var>133.5</var>(f) For a soil deficiency district:<br/>
<a id="pl.133.6"></a><var>133.6</var>(1) increments may be collected through 20 years after the receipt by the authority
         of <br/>
<a id="pl.133.7"></a><var>133.7</var>the first increment from the district;<br/>
<a id="pl.133.8"></a><var>133.8</var>(2) increments may be used only to:<br/>
<a id="pl.133.9"></a><var>133.9</var>(i) acquire parcels on which the improvements described in item (ii) will occur;<br/>
<a id="pl.133.10"></a><var>133.10</var>(ii) pay for the cost of correcting the unusual terrain or soil deficiencies and the
         additional <br/>
<a id="pl.133.11"></a><var>133.11</var>cost of installing public improvements directly caused by the deficiencies; and<br/>
<a id="pl.133.12"></a><var>133.12</var>(iii) pay for the administrative expenses of the authority allocable to the district;
         and<br/>
<a id="pl.133.13"></a><var>133.13</var>(3) any parcel acquired with increments from the district must be sold at no less
         than <br/>
<a id="pl.133.14"></a><var>133.14</var>their fair market value.<br/>
<a id="pl.133.15"></a><var>133.15</var>(g) Increments spent for any infrastructure costs, whether inside a district or outside
         a <br/>
<a id="pl.133.16"></a><var>133.16</var>district but within the project area, are deemed to satisfy the requirements of Minnesota
         <br/>
<a id="pl.133.17"></a><var>133.17</var>Statutes, section 
         <statute_ref>469.176, subdivision 4j</statute_ref>.<br/>
<a id="pl.133.18"></a><var>133.18</var>(h) The authority to approve tax increment financing plans to establish tax increment
         <br/>
<a id="pl.133.19"></a><var>133.19</var>financing districts under this section expires June 30, 2020.<br/>
<a id="pl.133.20"></a><var>133.20</var>(i) Notwithstanding the restrictions in paragraph (f), clause (2), the city may use
         <br/>
<a id="pl.133.21"></a><var>133.21</var>increments from a soil deficiency district to acquire parcels and for other infrastructure
         costs <br/>
<a id="pl.133.22"></a><var>133.22</var>either inside or outside of the district, but within the project area, if the acquisition
         or <br/>
<a id="pl.133.23"></a><var>133.23</var>infrastructure is for a qualified development. For purposes of this paragraph, a development
         <br/>
<a id="pl.133.24"></a><var>133.24</var>is a qualified development only if all of the following requirements are satisfied:<br/>
<a id="pl.133.25"></a><var>133.25</var>(1) the city finds, by resolution, that the land acquisition and infrastructure are
         undertaken <br/>
<a id="pl.133.26"></a><var>133.26</var>primarily to serve the development;<br/>
<a id="pl.133.27"></a><var>133.27</var>(2) the city has a binding, written commitment and adequate financial assurances from
         <br/>
<a id="pl.133.28"></a><var>133.28</var>the developer that the development will be constructed; and<br/>
<a id="pl.133.29"></a><var>133.29</var>(3) the development does not consist of retail trade or housing improvements.<br/>
<a id="pl.134.1"></a><var>134.1</var><b>EFFECTIVE DATE.</b>This section is effective upon approval by the governing body <br/>
<a id="pl.134.2"></a><var>134.2</var>of the city of Maple Grove and its compliance with the requirements of Minnesota Statutes,
         <br/>
<a id="pl.134.3"></a><var>134.3</var>section 645.021.<br/>
<br/>
<a id="bill.5.13.0"></a><a id="pl.134.4"></a><var>134.4</var>    Sec. 13. <b>CITY OF ANOKA; GREENS OF ANOKA TIF DISTRICT.</b><br/>
<a id="pl.134.5"></a><var>134.5</var>For purposes of Minnesota Statutes, section 469.1763, subdivision 3, paragraph (c),
         the <br/>
<a id="pl.134.6"></a><var>134.6</var>city of Anoka's Greens of Anoka redevelopment tax increment financing district is
         deemed <br/>
<a id="pl.134.7"></a><var>134.7</var>to be certified on June 29, 2012, rather than its actual certification date of July
         2, 2012, and <br/>
<a id="pl.134.8"></a><var>134.8</var>the provisions of Minnesota Statutes, section 469.1763, subdivisions 3 and 4, apply
         as if <br/>
<a id="pl.134.9"></a><var>134.9</var>the district were certified on that date.<br/>
<a id="pl.134.10"></a><var>134.10</var><b>EFFECTIVE DATE.</b>This section is effective upon approval by the governing body <br/>
<a id="pl.134.11"></a><var>134.11</var>of the city of Anoka and upon compliance by the city with Minnesota Statutes, section
         <br/>
<a id="pl.134.12"></a><var>134.12</var>645.021, subdivisions 2 and 3.<br/>
<br/>
<a id="bill.5.14.0"></a><a id="pl.134.13"></a><var>134.13</var>    Sec. 14. <b>CITY OF COON RAPIDS; TIF DISTRICT 6-1; PORT RIVERWALK.</b><br/>
<a id="pl.134.14"></a><var>134.14</var>Notwithstanding the provisions of Minnesota Statutes, section 469.176, subdivision
         1b, <br/>
<a id="pl.134.15"></a><var>134.15</var>or any other law to the contrary, the city of Coon Rapids may collect tax increment
         from <br/>
<a id="pl.134.16"></a><var>134.16</var>District 6-1 Port Riverwalk through December 31, 2038.<br/>
<a id="pl.134.17"></a><var>134.17</var><b>EFFECTIVE DATE.</b>This section is effective upon compliance by the governing bodies <br/>
<a id="pl.134.18"></a><var>134.18</var>of the city of Coon Rapids, Anoka County, and Independent School District No. 11 with
         <br/>
<a id="pl.134.19"></a><var>134.19</var>the requirements of Minnesota Statutes, sections 469.1782, subdivision 2, and 645.021,
         <br/>
<a id="pl.134.20"></a><var>134.20</var>subdivision 3.<br/>
<br/>
<a id="bill.5.15.0"></a><a id="pl.134.21"></a><var>134.21</var>    Sec. 15. <b>CITY OF COTTAGE GROVE; TIF DISTRICT 1-12; GATEWAY NORTH.</b><br/>
<a id="pl.134.22"></a><var>134.22</var>The requirement of Minnesota Statutes, section 469.1763, subdivision 3, that activities
         <br/>
<a id="pl.134.23"></a><var>134.23</var>must be undertaken within a five-year period from the date of certification of a tax
         increment <br/>
<a id="pl.134.24"></a><var>134.24</var>financing district, is considered to be met for Tax Increment Financing District No.
         1-12 <br/>
<a id="pl.134.25"></a><var>134.25</var>(Gateway North), administered by the Cottage Grove Economic Development Authority,
         <br/>
<a id="pl.134.26"></a><var>134.26</var>if the activities are undertaken prior to January 1, 2017.<br/>
<a id="pl.134.27"></a><var>134.27</var><b>EFFECTIVE DATE.</b>This section is effective upon compliance by the chief clerical <br/>
<a id="pl.134.28"></a><var>134.28</var>officer of the governing body of the city of Cottage Grove with the requirements of
         Minnesota <br/>
<a id="pl.134.29"></a><var>134.29</var>Statutes, section 645.021, subdivisions 2 and 3.<br/>
<br/>
<a id="bill.5.16.0"></a><a id="pl.135.1"></a><var>135.1</var>    Sec. 16. <b>CITY OF EDINA; APPROVAL OF 2014 SPECIAL LAW.</b><br/>
<a id="pl.135.2"></a><var>135.2</var>Notwithstanding the provisions of Minnesota Statutes, section 645.021, subdivision
         3, <br/>
<a id="pl.135.3"></a><var>135.3</var>the chief clerical officer of the city of Edina may file with the secretary of state
         certificate <br/>
<a id="pl.135.4"></a><var>135.4</var>of approval of Laws 2014, chapter 308, article 6, section 8, by December 31, 2017,
         and, if <br/>
<a id="pl.135.5"></a><var>135.5</var>the certificate is so filed and the requirements of Minnesota Statutes, section 645.021,
         <br/>
<a id="pl.135.6"></a><var>135.6</var>subdivision 3, are otherwise complied with, the special law is deemed approved, and
         all <br/>
<a id="pl.135.7"></a><var>135.7</var>actions taken by the city before the effective date of this section in reliance on
         Laws 2014, <br/>
<a id="pl.135.8"></a><var>135.8</var>chapter 308, article 6, section 8, are deemed consistent with Laws 2014, chapter 308,
         article <br/>
<a id="pl.135.9"></a><var>135.9</var>6, section 8, and this act.<br/>
<a id="pl.135.10"></a><var>135.10</var><b>EFFECTIVE DATE.</b>This section is effective the day following final enactment without <br/>
<a id="pl.135.11"></a><var>135.11</var>local approval as an amendment to the provisions of Laws 2014, chapter 308, article
         6, <br/>
<a id="pl.135.12"></a><var>135.12</var>section 8.<br/>
<br/>
<a id="bill.5.17.0"></a><a id="pl.135.13"></a><var>135.13</var>    Sec. 17. <b>CITY OF MOORHEAD; TIF DISTRICT; FIRST AVENUE NORTH.</b><br/>
<a id="pl.135.14"></a><var>135.14</var>For purposes of Minnesota Statutes, section 469.1763, subdivision 3, paragraph (c),
         the <br/>
<a id="pl.135.15"></a><var>135.15</var>city of Moorhead's 1st Avenue North (Central Corridors) Redevelopment Tax Increment
         <br/>
<a id="pl.135.16"></a><var>135.16</var>Financing District is deemed to be certified on June 29, 2012, rather than its actual
         <br/>
<a id="pl.135.17"></a><var>135.17</var>certification date of July 12, 2012, and Minnesota Statutes, section 469.1763, subdivisions
         <br/>
<a id="pl.135.18"></a><var>135.18</var>3 and 4, apply as if the district were certified on that date.<br/>
<a id="pl.135.19"></a><var>135.19</var><b>EFFECTIVE DATE.</b>This section is effective upon approval by the governing body <br/>
<a id="pl.135.20"></a><var>135.20</var>of the city of Moorhead and upon compliance by the city with Minnesota Statutes, section
         <br/>
<a id="pl.135.21"></a><var>135.21</var>645.021, subdivisions 2 and 3.<br/>
<br/>
<a id="bill.5.18.0"></a><a id="pl.135.22"></a><var>135.22</var>    Sec. 18. <b>CITY OF RICHFIELD; EXTENSION OF CEDAR AVENUE TIF </b><br/>
<a id="pl.135.23"></a><var>135.23</var><b>DISTRICT.</b><br/>
<a id="pl.135.24"></a><var>135.24</var>Notwithstanding Minnesota Statutes, section 469.176, subdivision 1b, or any other
         law <br/>
<a id="pl.135.25"></a><var>135.25</var>to the contrary, the city of Richfield and the Housing and Redevelopment Authority
         in and <br/>
<a id="pl.135.26"></a><var>135.26</var>for the city of Richfield may elect to extend the duration limit of the redevelopment
         tax <br/>
<a id="pl.135.27"></a><var>135.27</var>increment financing district known as the Cedar Avenue Tax Increment Financing District
         <br/>
<a id="pl.135.28"></a><var>135.28</var>established by Laws 2005, chapter 152, article 2, section 25, by ten years.<br/>
<a id="pl.135.29"></a><var>135.29</var><b>EFFECTIVE DATE.</b>This section is effective upon compliance by the city of Richfield, <br/>
<a id="pl.135.30"></a><var>135.30</var>Hennepin County, and Independent School District No. 280 with the requirements of
         <br/>
<a id="pl.135.31"></a><var>135.31</var>Minnesota Statutes, sections 469.1782, subdivision 2; and 645.021, subdivisions 2
         and 3.<br/>
<br/>
<a id="bill.5.19.0"></a><a id="pl.136.1"></a><var>136.1</var>    Sec. 19. <b>CITY OF RICHFIELD; LYNDALE GARDENS TIF DISTRICT.</b><br/>
<a id="pl.136.2"></a><var>136.2</var>The requirements of Minnesota Statutes, section 469.1763, subdivision 3, that activities
         <br/>
<a id="pl.136.3"></a><var>136.3</var>must be undertaken within a five-year period from the date of certification of a tax
         increment <br/>
<a id="pl.136.4"></a><var>136.4</var>financing district, are considered to be met for the Lyndale Gardens Tax Increment
         Financing <br/>
<a id="pl.136.5"></a><var>136.5</var>District established by the city of Richfield and the housing and redevelopment authority
         <br/>
<a id="pl.136.6"></a><var>136.6</var>in and for the city of Richfield if the activities are undertaken within eight years
         from the <br/>
<a id="pl.136.7"></a><var>136.7</var>date of certification.<br/>
<a id="pl.136.8"></a><var>136.8</var><b>EFFECTIVE DATE.</b>This act is effective upon the city of Richfield's compliance with <br/>
<a id="pl.136.9"></a><var>136.9</var>the requirements of Minnesota Statutes, section 645.021, subdivisions 2 and 3.<br/>
<br/>
<a id="bill.5.20.0"></a><a id="pl.136.10"></a><var>136.10</var>    Sec. 20. <b>CITY OF ROCHESTER; TIF DISTRICT 36; BIOSCIENCE PROJECT.</b><br/>
<a id="pl.136.11"></a><var>136.11</var>Notwithstanding the provisions of Minnesota Statutes, sections 469.174 and 469.176,
         <br/>
<a id="pl.136.12"></a><var>136.12</var>the city of Rochester may spend the proceeds from the sale or lease of any property
         purchased <br/>
<a id="pl.136.13"></a><var>136.13</var>with tax increments derived from tax increment financing district number 36 (Bioscience
         <br/>
<a id="pl.136.14"></a><var>136.14</var>Project) for the costs of operating, maintaining, and improving properties acquired
         with tax <br/>
<a id="pl.136.15"></a><var>136.15</var>increments from district number 36, including funding and maintaining reserves for
         capital <br/>
<a id="pl.136.16"></a><var>136.16</var>or operating expenses. Following the close of the third calendar year after decertification
         <br/>
<a id="pl.136.17"></a><var>136.17</var>of that district, any remaining amounts of the proceeds are not subject to restrictions
         that <br/>
<a id="pl.136.18"></a><var>136.18</var>apply to tax increments under Minnesota Statutes, sections 469.174 to 469.1794.<br/>
<a id="pl.136.19"></a><var>136.19</var><b>EFFECTIVE DATE.</b>This section is effective the day following final enactment without <br/>
<a id="pl.136.20"></a><var>136.20</var>local approval under Minnesota Statutes, section 645.023, subdivision 1, clause (a).<br/>
<br/>
<a id="bill.5.21.0"></a><a id="pl.136.21"></a><var>136.21</var>    Sec. 21. <b>CITY OF SOUTH ST. PAUL; EXTENSION OF TIME TO ADOPT </b><br/>
<a id="pl.136.22"></a><var>136.22</var><b>INTERFUND LOAN RESOLUTION FOR 4TH AVENUE VILLAGE TIF DISTRICT.</b><br/>
<a id="pl.136.23"></a><var>136.23</var>Notwithstanding Minnesota Statutes, section 469.178, subdivision 7, the governing
         body <br/>
<a id="pl.136.24"></a><var>136.24</var>of the South St. Paul Economic Development Authority, successor to the Housing and
         <br/>
<a id="pl.136.25"></a><var>136.25</var>Redevelopment Authority in and for the city of South St. Paul, may retroactively approve
         <br/>
<a id="pl.136.26"></a><var>136.26</var>a previously established interfund loan for the 4th Avenue Village Tax Increment District
         <br/>
<a id="pl.136.27"></a><var>136.27</var>in the city of South St. Paul if the governing body adopts a resolution approving
         that loan <br/>
<a id="pl.136.28"></a><var>136.28</var>by August 1, 2017, and if the requirements of Minnesota Statutes, section 469.178,
         <br/>
<a id="pl.136.29"></a><var>136.29</var>subdivision 7, are otherwise complied with, the interfund loan authorization is deemed
         to <br/>
<a id="pl.136.30"></a><var>136.30</var>satisfy Minnesota Statutes, section 469.178, subdivision 7.<br/>
<a id="pl.136.31"></a><var>136.31</var><b>EFFECTIVE DATE.</b>This section is effective without local approval under Minnesota <br/>
<a id="pl.136.32"></a><var>136.32</var>Statutes, section 645.023, subdivision 1, paragraph (a), on the day following final
         enactment.<br/>
<br/>
<a id="bill.5.22.0"></a><a id="pl.137.1"></a><var>137.1</var>    Sec. 22. <b>CITY OF ST. LOUIS PARK; ELMWOOD VILLAGE TIF DISTRICT.</b><br/>
<a id="pl.137.2"></a><var>137.2</var>For purposes of the Elmwood Village Tax Increment Financing District in the city of
         <br/>
<a id="pl.137.3"></a><var>137.3</var>St. Louis Park, including during the duration extension authorized by Laws 2009, chapter
         <br/>
<a id="pl.137.4"></a><var>137.4</var>88, article 5, section 19, the period under Minnesota Statutes, section 469.1763,
         subdivision <br/>
<a id="pl.137.5"></a><var>137.5</var>3, is extended through December 31, 2019, and calendar year 2020 is the first year
         to which <br/>
<a id="pl.137.6"></a><var>137.6</var>Minnesota Statutes, section 469.1763, subdivision 4, applies. In addition, the permitted
         <br/>
<a id="pl.137.7"></a><var>137.7</var>percentage of increments that may be expended under Minnesota Statutes, section 469.1763,
         <br/>
<a id="pl.137.8"></a><var>137.8</var>subdivision 2, on activities outside of the district is increased to 45 percent for
         the district.<br/>
<a id="pl.137.9"></a><var>137.9</var><b>EFFECTIVE DATE.</b>This section is effective upon compliance by the governing body <br/>
<a id="pl.137.10"></a><var>137.10</var>of the city of St. Louis Park with the requirements of Minnesota Statutes, section
         645.021, <br/>
<a id="pl.137.11"></a><var>137.11</var>subdivision 3.<br/>
<br/>
<a id="bill.5.23.0"></a><a id="pl.137.12"></a><var>137.12</var>    Sec. 23. <b>CITY OF ST. PAUL; FORD SITE REDEVELOPMENT TIF DISTRICT.</b><br/>
<a id="pl.137.13"></a><var>137.13</var>(a) For purposes of computing the duration limits under Minnesota Statutes, section
         <br/>
<a id="pl.137.14"></a><var>137.14</var>469.176, subdivision 1b, the housing and redevelopment authority of the city of St.
         Paul <br/>
<a id="pl.137.15"></a><var>137.15</var>may waive receipt of increment for the Ford Site Redevelopment Tax Increment Financing
         <br/>
<a id="pl.137.16"></a><var>137.16</var>District. This authority is limited to the first four years of increment or increments
         derived <br/>
<a id="pl.137.17"></a><var>137.17</var>from taxes payable in 2023, whichever occurs first.<br/>
<a id="pl.137.18"></a><var>137.18</var>(b) If the city elects to waive receipt of increment under paragraph (a), for purposes
         of <br/>
<a id="pl.137.19"></a><var>137.19</var>applying any limits based on when the district was certified under Minnesota Statutes,
         <br/>
<a id="pl.137.20"></a><var>137.20</var>section 469.176, subdivision 6, or 469.1763, the date of certification for the district
         is deemed <br/>
<a id="pl.137.21"></a><var>137.21</var>to be January 2 of the property tax assessment year for which increment is first received
         <br/>
<a id="pl.137.22"></a><var>137.22</var>under the waiver.<br/>
<a id="pl.137.23"></a><var>137.23</var><b>EFFECTIVE DATE.</b>This section is effective July 1, 2017, without local approval <br/>
<a id="pl.137.24"></a><var>137.24</var>under Minnesota Statutes, section 645.023, subdivision 1, paragraph (a).<br/>
<br/>
<a id="bill.5.24.0"></a><a id="pl.137.25"></a><var>137.25</var>    Sec. 24. <b>WASHINGTON COUNTY; NEWPORT REDROCK CROSSING PROJECT </b><br/>
<a id="pl.137.26"></a><var>137.26</var><b>TIF DISTRICT; SPECIAL RULES.</b><br/>
<a id="pl.137.27"></a><var>137.27</var>(a) If Washington County elects, upon the adoption of a tax increment financing plan
         <br/>
<a id="pl.137.28"></a><var>137.28</var>for a district, the rules under this section apply to one or more tax increment financing
         <br/>
<a id="pl.137.29"></a><var>137.29</var>districts established by the county or the community development agency of the county.
         <br/>
<a id="pl.137.30"></a><var>137.30</var>The area within which the tax increment districts may be created is located in the
         city of <br/>
<a id="pl.137.31"></a><var>137.31</var>Newport and is south of marked Interstate Highway 494, north of 15th Street extended
         to <br/>
<a id="pl.137.32"></a><var>137.32</var>the Mississippi River, east of the Mississippi River, and west of marked Trunk Highway
         <br/>
<a id="pl.138.1"></a><var>138.1</var>61 and the adjacent rights-of-way and shall be referred to as the "Newport Red Rock
         Crossing <br/>
<a id="pl.138.2"></a><var>138.2</var>Project Area" or "project area."<br/>
<a id="pl.138.3"></a><var>138.3</var>(b) The requirements for qualifying a redevelopment district under Minnesota Statutes,
         <br/>
<a id="pl.138.4"></a><var>138.4</var>section 469.174, subdivision 10, do not apply to the parcels identified by parcel
         identification <br/>
<a id="pl.138.5"></a><var>138.5</var>numbers: 2602822440051, 260282244050, 260282244049, 260282244048, 2602822440046, <br/>
<a id="pl.138.6"></a><var>138.6</var>2602822440045, 260282244044, 2602822440043, 2602822440026, 2602822440025, <br/>
<a id="pl.138.7"></a><var>138.7</var>260282244024, and 2602822440023, which are deemed substandard for the purpose of <br/>
<a id="pl.138.8"></a><var>138.8</var>qualifying the district as a redevelopment district.<br/>
<a id="pl.138.9"></a><var>138.9</var>(c) Increments spent outside a district shall only be spent within the project area
         and on <br/>
<a id="pl.138.10"></a><var>138.10</var>costs described in Minnesota Statutes, section 469.176, subdivision 4j.<br/>
<a id="pl.138.11"></a><var>138.11</var>(d) Notwithstanding anything to the contrary in Minnesota Statutes, section 469.1763,
         <br/>
<a id="pl.138.12"></a><var>138.12</var>subdivision 2, paragraph (a), not more than 80 percent of the total revenue derived
         from tax <br/>
<a id="pl.138.13"></a><var>138.13</var>increments paid by properties in any district, measured over the life of the district,
         may be <br/>
<a id="pl.138.14"></a><var>138.14</var>expended on activities outside the district but within the project area. The five-year
         rule <br/>
<a id="pl.138.15"></a><var>138.15</var>under Minnesota Statutes, section 469.1763, subdivision 3, applies as if the limit
         is nine <br/>
<a id="pl.138.16"></a><var>138.16</var>years.<br/>
<a id="pl.138.17"></a><var>138.17</var>(e) The authority to approve a tax increment financing plan and to establish a tax
         <br/>
<a id="pl.138.18"></a><var>138.18</var>increment financing district under this section expires December 31, 2027.<br/>
<a id="pl.138.19"></a><var>138.19</var>(f) The use of revenues for decertification in Minnesota Statutes, section 469.1763,
         <br/>
<a id="pl.138.20"></a><var>138.20</var>subdivision 4, does not apply to the project area.<br/>
<a id="pl.138.21"></a><var>138.21</var><b>EFFECTIVE DATE.</b>This section is effective and shall retroactively include the <br/>
<a id="pl.138.22"></a><var>138.22</var>redevelopment district in the project area approved by Washington County on November
         <br/>
<a id="pl.138.23"></a><var>138.23</var>8, 2016, upon approval by the governing body of the city of Newport and Washington
         <br/>
<a id="pl.138.24"></a><var>138.24</var>County and upon compliance by the county with Minnesota Statutes, section 645.021,
         <br/>
<a id="pl.138.25"></a><var>138.25</var>subdivision 3.<br/>
<br/>
<a id="bill.5.25.0"></a><a id="pl.138.26"></a><var>138.26</var>    Sec. 25. <b>CITY OF WAYZATA; TIF DISTRICT 3; WIDSTEN.</b><br/>
<a id="pl.138.27"></a><var>138.27</var>(a) The requirements of Minnesota Statutes, section 469.1763, subdivision 3, that
         <br/>
<a id="pl.138.28"></a><var>138.28</var>activities must be undertaken within a five-year period from the date of certification
         of a <br/>
<a id="pl.138.29"></a><var>138.29</var>tax increment financing district, are considered to be met for Tax Increment Financing
         <br/>
<a id="pl.138.30"></a><var>138.30</var>District 3 (Widsten) in the city of Wayzata if the revenues derived from tax increments
         from <br/>
<a id="pl.138.31"></a><var>138.31</var>the district are expended for any project contemplated by the original tax increment
         financing <br/>
<a id="pl.138.32"></a><var>138.32</var>plan for the district, including, without limitation, a municipal parking ramp within
         the <br/>
<a id="pl.138.33"></a><var>138.33</var>district.<br/>
<a id="pl.139.1"></a><var>139.1</var>(b) The requirements of Minnesota Statutes, section 469.1763, subdivision 4, do not
         <br/>
<a id="pl.139.2"></a><var>139.2</var>apply to the district if the revenues derived from tax increment from the district
         are expended <br/>
<a id="pl.139.3"></a><var>139.3</var>for any project contemplated by the original tax increment financing plan for the
         district, <br/>
<a id="pl.139.4"></a><var>139.4</var>including, without limitation, a municipal parking ramp within the district.<br/>
<a id="pl.139.5"></a><var>139.5</var><b>EFFECTIVE DATE.</b>This section is effective upon compliance by the chief clerical <br/>
<a id="pl.139.6"></a><var>139.6</var>officer of the governing body of the city of Wayzata with the requirements of Minnesota
         <br/>
<a id="pl.139.7"></a><var>139.7</var>Statutes, section 645.021, subdivisions 2 and 3.<br/>
<br/>
<a id="bill.6.0.0"></a>

<a id="bill.6.1.0"></a><a id="pl.139.10"></a><var>139.10</var>    Section 1. <b>[471.9998] MERCHANT BAGS; PROHIBITION ON FEE OR TAX.</b><br/>
<a id="pl.139.11"></a><var>139.11</var>Notwithstanding any other provision of law, no political subdivision may impose or
         <br/>
<a id="pl.139.12"></a><var>139.12</var>require the imposition of any fee or tax, other than a local sales tax subject to
         section <br/>
<a id="pl.139.13"></a><var>139.13</var>297A.99, upon the use of paper, plastic, or reusable bags for packaging of any item
         or good <br/>
<a id="pl.139.14"></a><var>139.14</var>purchased from a merchant, itinerant vendor, or peddler.<br/>
<a id="pl.139.15"></a><var>139.15</var><b>EFFECTIVE DATE.</b>This section is effective May 31, 2017. Ordinances existing on <br/>
<a id="pl.139.16"></a><var>139.16</var>the effective date of this section that would be prohibited under this section are
         invalid as <br/>
<a id="pl.139.17"></a><var>139.17</var>of the effective date of this section.<br/>
<br/>
<a id="bill.6.2.0"></a><a id="pl.139.18"></a><var>139.18</var>    Sec. 2. Laws 1980, chapter 511, section 1, subdivision 2, as amended by Laws 1991, <br/>
<a id="pl.139.19"></a><var>139.19</var>chapter 291, article 8, section 22, Laws 1998, chapter 389, article 8, section 25,
         Laws 2003, <br/>
<a id="pl.139.20"></a><var>139.20</var>First Special Session chapter 21, article 8, section 11, Laws 2008, chapter 154, article
         5, <br/>
<a id="pl.139.21"></a><var>139.21</var>section 2, and Laws 2014, chapter 308, article 3, section 21, is amended to read:<br/>
<a id="pl.139.22"></a><var>139.22</var>    Subd. 2. (a) Notwithstanding Minnesota Statutes, section 
         <statute_ref>477A.016</statute_ref>, or any other law, <br/>
<a id="pl.139.23"></a><var>139.23</var>ordinance, or city charter provision to the contrary, the city of Duluth may, by ordinance,
         <br/>
<a id="pl.139.24"></a><var>139.24</var>impose an additional sales tax of up to one and three-quarter percent on sales transactions
         <br/>
<a id="pl.139.25"></a><var>139.25</var>which are described in Minnesota Statutes 2000, section 297A.01, subdivision 3, clause
         (c). <br/>
<a id="pl.139.26"></a><var>139.26</var>The imposition of this tax shall not be subject to voter referendum under either state
         law or <br/>
<a id="pl.139.27"></a><var>139.27</var>city charter provisions. When the city council determines that the taxes imposed under
         this <br/>
<a id="pl.139.28"></a><var>139.28</var>paragraph at a rate of three-quarters of one percent and other sources of revenue
         produce <br/>
<a id="pl.139.29"></a><var>139.29</var>revenue sufficient to pay debt service on bonds in the principal amount of $40,285,000
         plus <br/>
<a id="pl.139.30"></a><var>139.30</var>issuance and discount costs, issued for capital improvements at the Duluth Entertainment
         <br/>
<a id="pl.139.31"></a><var>139.31</var>and Convention Center, which include a new arena, the rate of tax under this subdivision
         <br/>
<a id="pl.139.32"></a><var>139.32</var>must be reduced by three-quarters of one percent.<br/>
<a id="pl.140.1"></a><var>140.1</var>(b) In addition to the tax in paragraph (a) and notwithstanding Minnesota Statutes,
         section <br/>
<statute_ref><a id="pl.140.2"></a><var>140.2</var>477A.016
         </statute_ref>, or any other law, ordinance, or city charter provision to the contrary, the city
         of <br/>
<a id="pl.140.3"></a><var>140.3</var>Duluth may, by ordinance, impose an additional sales tax of up to one-half of one
         percent <br/>
<a id="pl.140.4"></a><var>140.4</var>on sales transactions which are described in Minnesota Statutes 2000, section 297A.01,
         <br/>
<a id="pl.140.5"></a><var>140.5</var>subdivision 3, clause (c). This tax expires when the city council determines that
         the tax <br/>
<a id="pl.140.6"></a><var>140.6</var>imposed under this paragraph, along with the tax imposed under section 22, paragraph
         (b), <br/>
<a id="pl.140.7"></a><var>140.7</var>has produced revenues sufficient to pay the debt service on bonds in a principal amount
         of <br/>
<a id="pl.140.8"></a><var>140.8</var>no more than $18,000,000, plus issuance and discount costs, to finance capital improvements
         <br/>
<a id="pl.140.9"></a><var>140.9</var>to public facilities to support tourism and recreational activities in that portion
         of the city <br/>
<a id="pl.140.10"></a><var>140.10</var>west of 34th 14th Avenue West and the area south of and including Skyline Parkway.<br/>
<a id="pl.140.11"></a><var>140.11</var>(c) The city of Duluth may sell and issue up to $18,000,000 in general obligation
         bonds <br/>
<a id="pl.140.12"></a><var>140.12</var>under Minnesota Statutes, chapter 475, plus an additional amount to pay for the costs
         of <br/>
<a id="pl.140.13"></a><var>140.13</var>issuance and any premiums. The proceeds may be used to finance capital improvements
         to <br/>
<a id="pl.140.14"></a><var>140.14</var>public facilities that support tourism and recreational activities in the portion
         of the city <br/>
<a id="pl.140.15"></a><var>140.15</var>west of 34th 14th Avenue West and the area south of and including Skyline Parkway, as <br/>
<a id="pl.140.16"></a><var>140.16</var>described in paragraph (b). The issuance of the bonds is subject to the provisions
         of <br/>
<a id="pl.140.17"></a><var>140.17</var>Minnesota Statutes, chapter 475, except no election shall be required unless required
         by the <br/>
<a id="pl.140.18"></a><var>140.18</var>city charter. The bonds shall not be included in computing net debt. The revenues
         from the <br/>
<a id="pl.140.19"></a><var>140.19</var>taxes that the city of Duluth may impose under paragraph (b) and under section 22,
         paragraph <br/>
<a id="pl.140.20"></a><var>140.20</var>(b), may be pledged to pay principal of and interest on such bonds.<br/>
<a id="pl.140.21"></a><var>140.21</var><b>EFFECTIVE DATE.</b>This section is effective the day after the governing body of the <br/>
<a id="pl.140.22"></a><var>140.22</var>city of Duluth and its chief clerical officer comply with Minnesota Statutes, section
         645.021, <br/>
<a id="pl.140.23"></a><var>140.23</var>subdivisions 2 and 3.<br/>
<br/>
<a id="bill.6.3.0"></a><a id="pl.140.24"></a><var>140.24</var>    Sec. 3. Laws 1980, chapter 511, section 2, as amended by Laws 1998, chapter 389, article <br/>
<a id="pl.140.25"></a><var>140.25</var>8, section 26, Laws 2003, First Special Session chapter 21, article 8, section 12,
         and Laws <br/>
<a id="pl.140.26"></a><var>140.26</var>2014, chapter 308, article 3, section 22, is amended to read:<br/>
<a id="pl.140.27"></a><var>140.27</var>    Sec. 22. <b>CITY OF DULUTH; TAX ON RECEIPTS BY HOTELS AND MOTELS.</b><br/>
<a id="pl.140.28"></a><var>140.28</var>    (a) Notwithstanding Minnesota Statutes, section 
         <statute_ref>477A.016</statute_ref>, or any other law, or ordinance, <br/>
<a id="pl.140.29"></a><var>140.29</var>or city charter provision to the contrary, the city of Duluth may, by ordinance, impose
         an <br/>
<a id="pl.140.30"></a><var>140.30</var>additional tax of one percent upon the gross receipts from the sale of lodging for
         periods of <br/>
<a id="pl.140.31"></a><var>140.31</var>less than 30 days in hotels and motels located in the city. The tax shall be collected
         in the <br/>
<a id="pl.140.32"></a><var>140.32</var>same manner as the tax set forth in the Duluth city charter, section 54(d), paragraph
         one. <br/>
<a id="pl.140.33"></a><var>140.33</var>The imposition of this tax shall not be subject to voter referendum under either state
         law or <br/>
<a id="pl.140.34"></a><var>140.34</var>city charter provisions.<br/>
<a id="pl.141.1"></a><var>141.1</var>(b) In addition to the tax in paragraph (a) and notwithstanding Minnesota Statutes,
         section <br/>
<statute_ref><a id="pl.141.2"></a><var>141.2</var>477A.016
         </statute_ref>, or any other law, ordinance, or city charter provision to the contrary, the city
         of <br/>
<a id="pl.141.3"></a><var>141.3</var>Duluth may, by ordinance, impose an additional sales tax of up to one-half of one
         percent <br/>
<a id="pl.141.4"></a><var>141.4</var>on the gross receipts from the sale of lodging for periods of less than 30 days in
         hotels and <br/>
<a id="pl.141.5"></a><var>141.5</var>motels located in the city. This tax expires when the city council first determines
         that the <br/>
<a id="pl.141.6"></a><var>141.6</var>tax imposed under this paragraph, along with the tax imposed under section 21, paragraph
         <br/>
<a id="pl.141.7"></a><var>141.7</var>(b), has produced revenues sufficient to pay the debt service on bonds in a principal
         amount <br/>
<a id="pl.141.8"></a><var>141.8</var>of no more than $18,000,000, plus issuance and discount costs, to finance capital
         <br/>
<a id="pl.141.9"></a><var>141.9</var>improvements to public facilities to support tourism and recreational activities in
         that portion <br/>
<a id="pl.141.10"></a><var>141.10</var>of the city west of 34th 14th Avenue West and the area south of and including Skyline <br/>
<a id="pl.141.11"></a><var>141.11</var>Parkway.<br/>
<a id="pl.141.12"></a><var>141.12</var><b>EFFECTIVE DATE.</b>This section is effective the day after the governing body of the <br/>
<a id="pl.141.13"></a><var>141.13</var>city of Duluth and its chief clerical officer comply with Minnesota Statutes, section
         645.021, <br/>
<a id="pl.141.14"></a><var>141.14</var>subdivisions 2 and 3.<br/>
<br/>
<a id="bill.6.4.0"></a><a id="pl.141.15"></a><var>141.15</var>    Sec. 4. Laws 1991, chapter 291, article 8, section 27, subdivision 3, as amended by Laws <br/>
<a id="pl.141.16"></a><var>141.16</var>1998, chapter 389, article 8, section 28, Laws 2008, chapter 366, article 7, section
         9, and <br/>
<a id="pl.141.17"></a><var>141.17</var>Laws 2009, chapter 88, article 4, section 14, is amended to read:<br/>
<a id="pl.141.18"></a><var>141.18</var>    Subd. 3.  <b>Use of revenues.</b> (a) Revenues received from taxes authorized by subdivisions <br/>
<a id="pl.141.19"></a><var>141.19</var>1 and 2 shall be used by the city to pay the cost of collecting the tax and to pay
         all or a <br/>
<a id="pl.141.20"></a><var>141.20</var>portion of the expenses of constructing and improving facilities as part of an urban
         <br/>
<a id="pl.141.21"></a><var>141.21</var>revitalization project in downtown Mankato known as Riverfront 2000. Authorized expenses
         <br/>
<a id="pl.141.22"></a><var>141.22</var>include, but are not limited to, acquiring property and paying relocation expenses
         related <br/>
<a id="pl.141.23"></a><var>141.23</var>to the development of Riverfront 2000 and related facilities, and securing or paying
         debt <br/>
<a id="pl.141.24"></a><var>141.24</var>service on bonds or other obligations issued to finance the construction of Riverfront
         2000 <br/>
<a id="pl.141.25"></a><var>141.25</var>and related facilities. For purposes of this section, "Riverfront 2000 and related
         facilities" <br/>
<a id="pl.141.26"></a><var>141.26</var>means a civic-convention center, an arena, a riverfront park, a technology center
         and related <br/>
<a id="pl.141.27"></a><var>141.27</var>educational facilities, and all publicly owned real or personal property that the
         governing <br/>
<a id="pl.141.28"></a><var>141.28</var>body of the city determines will be necessary to facilitate the use of these facilities,
         including <br/>
<a id="pl.141.29"></a><var>141.29</var>but not limited to parking, skyways, pedestrian bridges, lighting, and landscaping.
         It also <br/>
<a id="pl.141.30"></a><var>141.30</var>includes the performing arts theatre and the Southern Minnesota Women's Hockey Exposition
         <br/>
<a id="pl.141.31"></a><var>141.31</var>Center, for use by Minnesota State University, Mankato.<br/>
<a id="pl.141.32"></a><var>141.32</var>    (b) Notwithstanding Minnesota Statutes, section 297A.99, subdivision 3, and as approved
         <br/>
<a id="pl.141.33"></a><var>141.33</var>by voters at the November 8, 2016, general election, the city may by ordinance also
         use <br/>
<a id="pl.141.34"></a><var>141.34</var>revenues from taxes authorized under subdivisions 1 and 2, up to a maximum of $47,000,000,
         <br/>
<a id="pl.142.1"></a><var>142.1</var>plus associated bond costs, to pay all or a portion of the expenses of the following
         capital <br/>
<a id="pl.142.2"></a><var>142.2</var>projects:<br/>
<a id="pl.142.3"></a><var>142.3</var>    (1) construction and improvements to regional recreational facilities including existing
         <br/>
<a id="pl.142.4"></a><var>142.4</var>hockey and curling rinks, a baseball park, youth athletic fields and facilities, the
         municipal <br/>
<a id="pl.142.5"></a><var>142.5</var>swimming pool including improvements to make the pool compliant with the Americans
         <br/>
<a id="pl.142.6"></a><var>142.6</var>with Disabilities Act, and indoor regional athletic facilities;<br/>
 <a id="pl.142.7"></a><var>142.7</var>    (2) improvements to flood control and the levee system;<br/>
<a id="pl.142.8"></a><var>142.8</var>(3) water quality improvement projects in Blue Earth and Nicollet Counties;<br/>
 <a id="pl.142.9"></a><var>142.9</var>(4) expansion of the regional transit building and related multimodal transit <br/>
<a id="pl.142.10"></a><var>142.10</var>improvements;<br/>
<a id="pl.142.11"></a><var>142.11</var>(5) regional public safety and emergency communications improvements and equipment;
         <br/>
<a id="pl.142.12"></a><var>142.12</var>and<br/>
<a id="pl.142.13"></a><var>142.13</var>(6) matching funds for improvements to publicly owned regional facilities including
         a <br/>
<a id="pl.142.14"></a><var>142.14</var>historic museum, supportive housing, and a senior center.<br/>
<a id="pl.142.15"></a><var>142.15</var><b>EFFECTIVE DATE.</b>This section is effective the day after the governing body of the <br/>
<a id="pl.142.16"></a><var>142.16</var>city of Mankato and its chief clerical officer comply with Minnesota Statutes, section
         <br/>
<a id="pl.142.17"></a><var>142.17</var>645.021, subdivisions 2 and 3.<br/>
<br/>
<a id="bill.6.5.0"></a><a id="pl.142.18"></a><var>142.18</var>    Sec. 5. Laws 1991, chapter 291, article 8, section 27, subdivision 4, as amended by Laws <br/>
<a id="pl.142.19"></a><var>142.19</var>2005, First Special Session chapter 3, article 5, section 25, and Laws 2008, chapter
         366, <br/>
<a id="pl.142.20"></a><var>142.20</var>article 7, section 10, is amended to read:<br/>
<a id="pl.142.21"></a><var>142.21</var>    Subd. 4.  <b>Expiration of taxing authority and expenditure limitation.</b> The authority <br/>
<a id="pl.142.22"></a><var>142.22</var>granted by subdivisions 1 and 2 to the city to impose a sales tax and an excise tax
         shall <br/>
<a id="pl.142.23"></a><var>142.23</var>expire on at the earlier of when revenues are sufficient to pay off the bonds, including <br/>
<a id="pl.142.24"></a><var>142.24</var>interest and all other associated bond costs authorized under subdivision 5, or  December <br/>
<a id="pl.142.25"></a><var>142.25</var>31, 2022 2038.<br/>
<a id="pl.142.26"></a><var>142.26</var><b>EFFECTIVE DATE.</b>This section is effective the day following final enactment without <br/>
<a id="pl.142.27"></a><var>142.27</var>local approval pursuant to Minnesota Statutes, section 645.023, subdivision 1.<br/>
<br/>
<a id="bill.6.6.0"></a><a id="pl.142.28"></a><var>142.28</var>    Sec. 6. Laws 1991, chapter 291, article 8, section 27, subdivision 5, is amended to read:<br/>
<a id="pl.142.29"></a><var>142.29</var>    Subd. 5. <b>Bonds.</b> (a) The city of Mankato may issue general obligation bonds of the city <br/>
<a id="pl.142.30"></a><var>142.30</var>in an amount not to exceed $25,000,000 for Riverfront 2000 and related facilities,
         without <br/>
<a id="pl.142.31"></a><var>142.31</var>election under Minnesota Statutes, chapter 475, on the question of issuance of the
         bonds or <br/>
<a id="pl.143.1"></a><var>143.1</var>a tax to pay them. The debt represented by bonds issued for Riverfront 2000 and related
         <br/>
<a id="pl.143.2"></a><var>143.2</var>facilities shall not be included in computing any debt limitations applicable to the
         city of <br/>
<a id="pl.143.3"></a><var>143.3</var>Mankato, and the levy of taxes required by section 
         <statute_ref>475.61</statute_ref> to pay principal of and interest <br/>
<a id="pl.143.4"></a><var>143.4</var>on the bonds shall not be subject to any levy limitation or be included in computing
         or <br/>
<a id="pl.143.5"></a><var>143.5</var>applying any levy limitation applicable to the city.<br/>
<a id="pl.143.6"></a><var>143.6</var>    (b) The city of Mankato may issue general obligation bonds of the city in an amount
         not <br/>
<a id="pl.143.7"></a><var>143.7</var>to exceed $47,000,000 for the projects listed under subdivision 3, paragraph (b),
         without <br/>
<a id="pl.143.8"></a><var>143.8</var>election under Minnesota Statutes, chapter 475, on the question of issuance of the
         bonds or <br/>
<a id="pl.143.9"></a><var>143.9</var>a tax to pay them. The debt represented by bonds under this paragraph shall not be
         included <br/>
<a id="pl.143.10"></a><var>143.10</var>in computing any debt limitations applicable to the city of Mankato, and the levy
         of taxes <br/>
<a id="pl.143.11"></a><var>143.11</var>required by Minnesota Statutes, section 
<statute_ref>475.61,</statute_ref> to pay principal of and interest on the bonds, <br/>
<a id="pl.143.12"></a><var>143.12</var>and shall not be subject to any levy limitation or be included in computing or applying
         any <br/>
<a id="pl.143.13"></a><var>143.13</var>levy limitation applicable to the city. The city may use tax revenue in excess of
         one year's <br/>
<a id="pl.143.14"></a><var>143.14</var>principal interest reserve for intended annual bond payments to pay all or a portion
         of the <br/>
<a id="pl.143.15"></a><var>143.15</var>cost of capital improvements authorized in subdivision 3.<br/>
<a id="pl.143.16"></a><var>143.16</var><b>EFFECTIVE DATE.</b>This section is effective the day following final enactment without <br/>
<a id="pl.143.17"></a><var>143.17</var>local approval pursuant to Minnesota Statutes, section 645.023, subdivision 1.<br/>
<br/>
<a id="bill.6.7.0"></a><a id="pl.143.18"></a><var>143.18</var>    Sec. 7. Laws 1996, chapter 471, article 2, section 29, subdivision 1, as amended by Laws <br/>
<a id="pl.143.19"></a><var>143.19</var>2006, chapter 259, article 3, section 3, and Laws 2011, First Special Session chapter
         7, <br/>
<a id="pl.143.20"></a><var>143.20</var>article 4, section 4, is amended to read:<br/>
<a id="pl.143.21"></a><var>143.21</var>    Subdivision 1. <b>Sales tax authorized.</b> (a) Notwithstanding Minnesota Statutes, section <br/>
<a id="pl.143.22"></a><var>143.22</var>477A.016, or any other contrary provision of law, ordinance, or city charter, the
         city of <br/>
<a id="pl.143.23"></a><var>143.23</var>Hermantown may, by ordinance, impose an additional sales tax of up to one percent
         on <br/>
<a id="pl.143.24"></a><var>143.24</var>sales transactions taxable pursuant to Minnesota Statutes, chapter 297A, that occur
         within <br/>
<a id="pl.143.25"></a><var>143.25</var>the city. The proceeds of the tax imposed under this section must be used to meet
         the costs <br/>
<a id="pl.143.26"></a><var>143.26</var>of:<br/>
<a id="pl.143.27"></a><var>143.27</var>    (1) extending a sewer interceptor line;<br/>
<a id="pl.143.28"></a><var>143.28</var>    (2) construction of a booster pump station, reservoirs, and related improvements to
         the <br/>
<a id="pl.143.29"></a><var>143.29</var>water system; and<br/>
<a id="pl.143.30"></a><var>143.30</var>    (3) construction of a building containing a police and fire station and an administrative
         <br/>
<a id="pl.143.31"></a><var>143.31</var>services facility.<br/>
<a id="pl.144.1"></a><var>144.1</var>(b) If the city imposed a sales tax of only one-half of one percent under paragraph
         (a), <br/>
<a id="pl.144.2"></a><var>144.2</var>it may increase the tax to one percent to fund the purposes under paragraph (a) provided
         it <br/>
<a id="pl.144.3"></a><var>144.3</var>is approved by the voters at a general election held before December 31, 2012.<br/>
<a id="pl.144.4"></a><var>144.4</var>(c) As approved by the voters at the November 8, 2016, general election, the proceeds
         <br/>
<a id="pl.144.5"></a><var>144.5</var>under this section may also be used to meet the costs of debt service payments for
         <br/>
<a id="pl.144.6"></a><var>144.6</var>construction of the Hermantown Wellness Center.<br/>
<a id="pl.144.7"></a><var>144.7</var><b>EFFECTIVE DATE.</b>This section is effective the day after the governing body of the <br/>
<a id="pl.144.8"></a><var>144.8</var>city of Hermantown and its chief clerical officer comply with Minnesota Statutes,
         section <br/>
<a id="pl.144.9"></a><var>144.9</var>645.021, subdivisions 2 and 3.<br/>
<br/>
<a id="bill.6.8.0"></a><a id="pl.144.10"></a><var>144.10</var>    Sec. 8. Laws 1996, chapter 471, article 2, section 29, subdivision 4, as amended by Laws <br/>
<a id="pl.144.11"></a><var>144.11</var>2006, chapter 259, article 3, section 4, is amended to read:<br/>
<a id="pl.144.12"></a><var>144.12</var>    Subd. 4. <b>Termination.</b> The tax authorized under this section terminates on March 31, <br/>
<a id="pl.144.13"></a><var>144.13</var>2026 at the earlier of (1) December 31, 2036, or (2) when the Hermantown City Council
         <br/>
<a id="pl.144.14"></a><var>144.14</var>first determines that sufficient funds have been received from the tax to fund the
         costs, <br/>
<a id="pl.144.15"></a><var>144.15</var>including bonds and associated bond costs for the uses specified in subdivision 1. Any funds <br/>
<a id="pl.144.16"></a><var>144.16</var>remaining after completion of the improvements and retirement or redemption of the
         bonds <br/>
<a id="pl.144.17"></a><var>144.17</var>may be placed in the general fund of the city.<br/>
<a id="pl.144.18"></a><var>144.18</var><b>EFFECTIVE DATE.</b>This section is effective the day following final enactment without <br/>
<a id="pl.144.19"></a><var>144.19</var>local approval pursuant to Minnesota Statutes, section 645.023, subdivision 1.<br/>
<br/>
<a id="bill.6.9.0"></a><a id="pl.144.20"></a><var>144.20</var>    Sec. 9. Laws 1999, chapter 243, article 4, section 17, subdivision 3, is amended to read:<br/>
<a id="pl.144.21"></a><var>144.21</var>    Subd. 3. <b>Use of revenues.</b> (a) Revenues received from taxes authorized by subdivisions <br/>
<a id="pl.144.22"></a><var>144.22</var>1 and 2 must be used by the city to pay the cost of collecting the taxes and to pay
         for <br/>
<a id="pl.144.23"></a><var>144.23</var>construction and improvement of a civic and community center and recreational facilities
         <br/>
<a id="pl.144.24"></a><var>144.24</var>to serve all ages, including seniors and youth. Authorized expenses include, but are
         not <br/>
<a id="pl.144.25"></a><var>144.25</var>limited to, acquiring property, paying construction and operating expenses related
         to the <br/>
<a id="pl.144.26"></a><var>144.26</var>development of an authorized facility, funding facilities replacement reserves, and
         paying <br/>
<a id="pl.144.27"></a><var>144.27</var>debt service on bonds or other obligations issued to finance the construction or expansion
         <br/>
<a id="pl.144.28"></a><var>144.28</var>of an authorized facility. The capital expenses for all projects authorized under
         this <br/>
<a id="pl.144.29"></a><var>144.29</var>subdivision that may be paid with these taxes are limited to $9,000,000, plus an amount
         <br/>
<a id="pl.144.30"></a><var>144.30</var>equal to the costs related to issuance of the bonds and funding facilities replacement
         reserves.<br/>
<a id="pl.144.31"></a><var>144.31</var>    (b) Notwithstanding Minnesota Statutes, section 297A.99, subdivision 3, and as approved
         <br/>
<a id="pl.144.32"></a><var>144.32</var>by the voters at the November 8, 2016, general election, the city of New Ulm may by
         <br/>
<a id="pl.145.1"></a><var>145.1</var>ordinance also use revenues from taxes authorized under subdivisions 1 and 2, up to
         a <br/>
<a id="pl.145.2"></a><var>145.2</var>maximum of $14,800,000, plus associated bond costs, to pay all or a portion of the
         expenses <br/>
<a id="pl.145.3"></a><var>145.3</var>of the following capital projects:<br/>
<a id="pl.145.4"></a><var>145.4</var>    (1) constructing an indoor water park and making safety improvements to the existing
         <br/>
<a id="pl.145.5"></a><var>145.5</var>recreational center pool;<br/>
<a id="pl.145.6"></a><var>145.6</var>    (2) constructing an indoor playground, a wellness center, and a gymnastics facility;<br/>
<a id="pl.145.7"></a><var>145.7</var>    (3) constructing a winter multipurpose dome;<br/>
<a id="pl.145.8"></a><var>145.8</var>    (4) making improvements to Johnson Park Grandstand; and<br/>
<a id="pl.145.9"></a><var>145.9</var>    (5) making improvements to the entrance road and parking at Hermann Heights Park.<br/>
<a id="pl.145.10"></a><var>145.10</var><b>EFFECTIVE DATE.</b>This section is effective the day after the governing body of the <br/>
<a id="pl.145.11"></a><var>145.11</var>city of New Ulm and its chief clerical officer comply with Minnesota Statutes, section
         <br/>
<a id="pl.145.12"></a><var>145.12</var>645.021, subdivisions 2 and 3.<br/>
<br/>
<a id="bill.6.10.0"></a><a id="pl.145.13"></a><var>145.13</var>    Sec. 10. Laws 1999, chapter 243, article 4, section 17, is amended by adding a subdivision
         <br/>
<a id="pl.145.14"></a><var>145.14</var>to read:<br/>
<a id="pl.145.15"></a><var>145.15</var>    Subd. 4a. <b>Bonding authority; additional use and extension of tax.</b> As approved by <br/>
<a id="pl.145.16"></a><var>145.16</var>the voters at the November 8, 2016, general election, and in addition to the bonds
         issued <br/>
<a id="pl.145.17"></a><var>145.17</var>under subdivision 4, the city of New Ulm may issue general obligation bonds of the
         city in <br/>
<a id="pl.145.18"></a><var>145.18</var>an amount not to exceed $14,800,000 for the projects listed in subdivision 3, paragraph
         (b). <br/>
<a id="pl.145.19"></a><var>145.19</var>The debt represented by bonds under this subdivision shall not be included in computing
         <br/>
<a id="pl.145.20"></a><var>145.20</var>any debt limitations applicable to the city of New Ulm, and the levy of taxes required
         by <br/>
<a id="pl.145.21"></a><var>145.21</var>Minnesota Statutes, section 475.61, to pay principal of and interest on the bonds,
         and shall <br/>
<a id="pl.145.22"></a><var>145.22</var>not be subject to any levy limitation or be included in computing or applying any
         levy <br/>
<a id="pl.145.23"></a><var>145.23</var>limitation applicable to the city.<br/>
<a id="pl.145.24"></a><var>145.24</var><b>EFFECTIVE DATE.</b>This section is effective the day after the governing body of the <br/>
<a id="pl.145.25"></a><var>145.25</var>city of New Ulm and its chief clerical officer comply with Minnesota Statutes, section
         <br/>
<a id="pl.145.26"></a><var>145.26</var>645.021, subdivisions 2 and 3.<br/>
<br/>
<a id="bill.6.11.0"></a><a id="pl.145.27"></a><var>145.27</var>    Sec. 11. Laws 1999, chapter 243, article 4, section 17, subdivision 5, is amended to read:<br/>
<a id="pl.145.28"></a><var>145.28</var>    Subd. 5. <b>Termination of taxes.</b> The taxes imposed under subdivisions 1 and 2 expire <br/>
<a id="pl.145.29"></a><var>145.29</var>when the city council determines that sufficient funds have been received from the
         taxes to <br/>
<a id="pl.145.30"></a><var>145.30</var>finance the capital and administrative costs for the acquisition, construction, and
         improvement <br/>
<a id="pl.145.31"></a><var>145.31</var>of facilities described in subdivision 3, including the additional use of revenues under <br/>
<a id="pl.146.1"></a><var>146.1</var>subdivision 3, paragraph (b), as approved by the voters at the November 8, 2016, general
         <br/>
<a id="pl.146.2"></a><var>146.2</var>election, and to prepay or retire at maturity the principal, interest, and premium due on
         any <br/>
<a id="pl.146.3"></a><var>146.3</var>bonds issued for the facilities under subdivision 4 subdivisions 4 and 4a. Any funds remaining <br/>
<a id="pl.146.4"></a><var>146.4</var>after completion of the project and retirement or redemption of the bonds may be placed
         in <br/>
<a id="pl.146.5"></a><var>146.5</var>the general fund of the city. The taxes imposed under subdivisions 1 and 2 may expire
         at <br/>
<a id="pl.146.6"></a><var>146.6</var>an earlier time if the city so determines by ordinance.<br/>
<a id="pl.146.7"></a><var>146.7</var><b>EFFECTIVE DATE.</b>This section is effective the day after the governing body of the <br/>
<a id="pl.146.8"></a><var>146.8</var>city of New Ulm and its chief clerical officer comply with Minnesota Statutes, section
         <br/>
<a id="pl.146.9"></a><var>146.9</var>645.021, subdivisions 2 and 3.<br/>
<br/>
<a id="bill.6.12.0"></a><a id="pl.146.10"></a><var>146.10</var>    Sec. 12. Laws 1999, chapter 243, article 4, section 18, subdivision 1, as amended by Laws <br/>
<a id="pl.146.11"></a><var>146.11</var>2008, chapter 366, article 7, section 12, is amended to read:<br/>
<a id="pl.146.12"></a><var>146.12</var>    Subdivision 1. <b>Sales and use tax.</b> (a) Notwithstanding Minnesota Statutes, section <br/>
<statute_ref><a id="pl.146.13"></a><var>146.13</var>477A.016
         </statute_ref>, or any other provision of law, ordinance, or city charter, if approved by the city
         <br/>
<a id="pl.146.14"></a><var>146.14</var>voters at the first municipal general election held after the date of final enactment
         of this <br/>
<a id="pl.146.15"></a><var>146.15</var>act or at a special election held November 2, 1999, the city of Proctor may impose
         by <br/>
<a id="pl.146.16"></a><var>146.16</var>ordinance a sales and use tax of up to one-half of one percent for the purposes specified
         in <br/>
<a id="pl.146.17"></a><var>146.17</var>subdivision 3. The provisions of Minnesota Statutes, section 
         <statute_ref>297A.99</statute_ref>, govern the imposition, <br/>
<a id="pl.146.18"></a><var>146.18</var>administration, collection, and enforcement of the tax authorized under this subdivision.<br/>
<a id="pl.146.19"></a><var>146.19</var>(b) Notwithstanding Minnesota Statutes, section 477A.016, or any other provision of
         <br/>
<a id="pl.146.20"></a><var>146.20</var>law, ordinance, or city charter, the city of Proctor may impose by ordinance an additional
         <br/>
<a id="pl.146.21"></a><var>146.21</var>sales and use tax of up to one-half of one percent if approved by the voters at the
         first general <br/>
<a id="pl.146.22"></a><var>146.22</var>election held after the date of final enactment of this act. The revenues received
         from the <br/>
<a id="pl.146.23"></a><var>146.23</var>additional tax must be used for the purposes specified in subdivision 3, paragraph
         (b).<br/>
<a id="pl.146.24"></a><var>146.24</var><b>EFFECTIVE DATE.</b>This section is effective the day after the governing body of the <br/>
<a id="pl.146.25"></a><var>146.25</var>city of Proctor and its chief clerical officer comply with Minnesota Statutes, section
         645.021, <br/>
<a id="pl.146.26"></a><var>146.26</var>subdivisions 2 and 3.<br/>
<br/>
<a id="bill.6.13.0"></a><a id="pl.146.27"></a><var>146.27</var>    Sec. 13. Laws 2005, First Special Session chapter 3, article 5, section 38, subdivision 2,
         <br/>
<a id="pl.146.28"></a><var>146.28</var>as amended by Laws 2006, chapter 259, article 3, section 6, is amended to read:<br/>
<a id="pl.146.29"></a><var>146.29</var>    Subd. 2. <b>Use of revenues.</b> The proceeds of the tax imposed under this section shall be <br/>
<a id="pl.146.30"></a><var>146.30</var>used to pay for lake water quality improvement projects as detailed in the Shell Rock River <br/>
<a id="pl.146.31"></a><var>146.31</var>watershed plan and as directed by the Shell Rock River Watershed Board. Notwithstanding
         <br/>
<a id="pl.146.32"></a><var>146.32</var>any provision of statute, other law, or city charter to the contrary, the city shall
         transfer all <br/>
<a id="pl.146.33"></a><var>146.33</var>revenues from the tax imposed under subdivision 1, as soon as they are received, to
         the <br/>
<a id="pl.147.1"></a><var>147.1</var>Shell Rock River Watershed District. The city is not required to review the intended uses <br/>
<a id="pl.147.2"></a><var>147.2</var>of the revenues by the watershed district, nor is the watershed district required
         to submit to <br/>
<a id="pl.147.3"></a><var>147.3</var>the city proposed budgets, statements, or invoices explaining the intended uses of
         the <br/>
<a id="pl.147.4"></a><var>147.4</var>revenues as a prerequisite for the transfer of the revenues. The Shell Rock River Watershed <br/>
<a id="pl.147.5"></a><var>147.5</var>District shall appear before the city of Albert Lea City Council on a biannual basis
         to present <br/>
<a id="pl.147.6"></a><var>147.6</var>a report of its activities, expenditures, and intended uses of the city sales tax
         revenue.<br/>
<a id="pl.147.7"></a><var>147.7</var><b>EFFECTIVE DATE.</b>This section is effective the day after the governing body of the <br/>
<a id="pl.147.8"></a><var>147.8</var>city of Albert Lea and its chief clerical officer comply with Minnesota Statutes,
         section <br/>
<a id="pl.147.9"></a><var>147.9</var>645.021, subdivisions 2 and 3.<br/>
<br/>
<a id="bill.6.14.0"></a><a id="pl.147.10"></a><var>147.10</var>    Sec. 14. Laws 2005, First Special Session chapter 3, article 5, section 38, subdivision 4,
         <br/>
<a id="pl.147.11"></a><var>147.11</var>as amended by Laws 2014, chapter 308, article 3, section 23, is amended to read:<br/>
<a id="pl.147.12"></a><var>147.12</var>    Subd. 4. <b>Termination of taxes.</b> The taxes imposed under this section expire at the earlier <br/>
<a id="pl.147.13"></a><var>147.13</var>of (1) 15 30 years after the taxes are first imposed, or (2) when the city council first <br/>
<a id="pl.147.14"></a><var>147.14</var>determines that the amount of revenues raised to pay for the projects under subdivision
         2, <br/>
<a id="pl.147.15"></a><var>147.15</var>shall meet or exceed the sum of $15,000,000 $30,000,000. Any funds remaining after <br/>
<a id="pl.147.16"></a><var>147.16</var>completion of the projects may be placed in the general fund of the city.<br/>
<a id="pl.147.17"></a><var>147.17</var><b>EFFECTIVE DATE.</b>This section is effective the day after the governing body of the <br/>
<a id="pl.147.18"></a><var>147.18</var>city of Albert Lea and its chief clerical officer comply with Minnesota Statutes,
         section <br/>
<a id="pl.147.19"></a><var>147.19</var>645.021, subdivisions 2 and 3.<br/>
<br/>
<a id="bill.6.15.0"></a><a id="pl.147.20"></a><var>147.20</var>    Sec. 15. Laws 2008, chapter 366, article 7, section 20, is amended to read:<br/>
<a id="pl.147.21"></a><var>147.21</var>    Sec. 20. <b>CITY OF NORTH MANKATO; TAXES AUTHORIZED.</b><br/>
<a id="pl.147.22"></a><var>147.22</var>    Subdivision 1. <b>Sales and use tax authorized.</b> Notwithstanding Minnesota Statutes, <br/>
<a id="pl.147.23"></a><var>147.23</var>section 
         <statute_ref>477A.016</statute_ref>, or any other provision of law, ordinance, or city charter, pursuant to the <br/>
<a id="pl.147.24"></a><var>147.24</var>approval of the voters on November 7, 2006, the city of North Mankato may impose by
         <br/>
<a id="pl.147.25"></a><var>147.25</var>ordinance a sales and use tax of one-half of one percent for the purposes specified
         in <br/>
<a id="pl.147.26"></a><var>147.26</var>subdivision 2. The provisions of Minnesota Statutes, section 
         <statute_ref>297A.99</statute_ref>, govern the imposition, <br/>
<a id="pl.147.27"></a><var>147.27</var>administration, collection, and enforcement of the taxes authorized under this subdivision.<br/>
<a id="pl.147.28"></a><var>147.28</var>    Subd. 2. <b>Use of revenues.</b> Revenues received from the tax authorized by subdivision 1 <br/>
<a id="pl.147.29"></a><var>147.29</var>must be used to pay all or part of the capital costs of the following projects:<br/>
<a id="pl.147.30"></a><var>147.30</var>    (1) the local share of the Trunk Highway 14/County State-Aid Highway 41 interchange
         <br/>
<a id="pl.147.31"></a><var>147.31</var>project;<br/>
<a id="pl.148.1"></a><var>148.1</var>    (2) development of regional parks and hiking and biking trails, including construction <br/>
<a id="pl.148.2"></a><var>148.2</var>of indoor regional athletic facilities;<br/>
<a id="pl.148.3"></a><var>148.3</var>    (3) expansion of the North Mankato Taylor Library;<br/>
<a id="pl.148.4"></a><var>148.4</var>    (4) riverfront redevelopment; and<br/>
<a id="pl.148.5"></a><var>148.5</var>    (5) lake improvement projects.<br/>
<a id="pl.148.6"></a><var>148.6</var>    The total amount of revenues from the tax in subdivision 1 that may be used to fund
         <br/>
<a id="pl.148.7"></a><var>148.7</var>these projects is $6,000,000 $15,000,000 plus any associated bond costs.<br/>
<a id="pl.148.8"></a><var>148.8</var>    Subd. 2a. <b>Authorization to extend the tax.</b> Notwithstanding Minnesota Statutes, section <br/>
<a id="pl.148.9"></a><var>148.9</var>297A.99, subdivision 3, the North Mankato city council may, by resolution, extend
         the tax <br/>
<a id="pl.148.10"></a><var>148.10</var>authorized under subdivision 1 to cover an additional $9,000,000 in bonds, plus associated
         <br/>
<a id="pl.148.11"></a><var>148.11</var>bond costs, to fund the projects in subdivision 2 as approved by the voters at the
         November <br/>
<a id="pl.148.12"></a><var>148.12</var>8, 2016, general election.<br/>
<a id="pl.148.13"></a><var>148.13</var>    Subd. 3. <b>Bonds.</b> (a) The city of North Mankato, pursuant to the approval of the voters <br/>
<a id="pl.148.14"></a><var>148.14</var>at the November 7, 2006 referendum authorizing the imposition of the taxes in this
         section, <br/>
<a id="pl.148.15"></a><var>148.15</var>may issue bonds under Minnesota Statutes, chapter 475, to pay capital and administrative
         <br/>
<a id="pl.148.16"></a><var>148.16</var>expenses for the projects described in subdivision 2, in an amount that does not exceed
         <br/>
<a id="pl.148.17"></a><var>148.17</var>$6,000,000. A separate election to approve the bonds under Minnesota Statutes, section
         <br/>
<statute_ref><a id="pl.148.18"></a><var>148.18</var>475.58
         </statute_ref>, is not required.<br/>
<a id="pl.148.19"></a><var>148.19</var>(b) The city of North Mankato, pursuant to approval of the voters at the November
         8, <br/>
<a id="pl.148.20"></a><var>148.20</var>2016, referendum extending the tax fee to provide additional revenue to be spent for
         the <br/>
<a id="pl.148.21"></a><var>148.21</var>projects in subdivision 2, may issue additional bonds under Minnesota Statutes, chapter
         <br/>
<a id="pl.148.22"></a><var>148.22</var>475, to pay capital and administrative expenses for those projects in an amount that
         does <br/>
<a id="pl.148.23"></a><var>148.23</var>not exceed $9,000,000. A separate election to approve the bonds under Minnesota Statutes,
         <br/>
<a id="pl.148.24"></a><var>148.24</var>section 
<statute_ref>475.58</statute_ref>, is not required.<br/>
<a id="pl.148.25"></a><var>148.25</var>    (b) (c) The debt represented by the bonds is not included in computing any debt limitation
         <br/>
<a id="pl.148.26"></a><var>148.26</var>applicable to the city, and any levy of taxes under Minnesota Statutes, section 
         <statute_ref>475.61</statute_ref>, to <br/>
<a id="pl.148.27"></a><var>148.27</var>pay principal and interest on the bonds is not subject to any levy limitation.<br/>
<a id="pl.148.28"></a><var>148.28</var>    Subd. 4. <b>Termination of taxes.</b> The tax imposed under subdivision 1 expires when the <br/>
<a id="pl.148.29"></a><var>148.29</var>city council determines that the amount of revenues received from the taxes to pay
         for the <br/>
<a id="pl.148.30"></a><var>148.30</var>projects under subdivision 2 first equals or exceeds $6,000,000 plus the additional
         amount <br/>
<a id="pl.148.31"></a><var>148.31</var>needed to pay the costs related to issuance of bonds under subdivision 3, including
         interest <br/>
<a id="pl.148.32"></a><var>148.32</var>on the bonds at the earlier of December 31, 2038, or when revenues from the taxes first <br/>
<a id="pl.148.33"></a><var>148.33</var>equal or exceed $15,000,000 plus the additional amount needed to pay costs related
         to <br/>
<a id="pl.149.1"></a><var>149.1</var>issuance of bonds under subdivision 3, including interest. Any funds remaining after <br/>
<a id="pl.149.2"></a><var>149.2</var>completion of the projects and retirement or redemption of the bonds shall be placed
         in a <br/>
<a id="pl.149.3"></a><var>149.3</var>capital facilities and equipment replacement fund of the city. The tax imposed under
         <br/>
<a id="pl.149.4"></a><var>149.4</var>subdivision 1 may expire at an earlier time if the city so determines by ordinance.<br/>
<a id="pl.149.5"></a><var>149.5</var><b>EFFECTIVE DATE.</b>This section is effective the day after the governing body of the <br/>
<a id="pl.149.6"></a><var>149.6</var>city of North Mankato and its chief clerical officer comply with Minnesota Statutes,
         section <br/>
<a id="pl.149.7"></a><var>149.7</var>645.021, subdivisions 2 and 3.<br/>
<br/>
<a id="bill.6.16.0"></a><a id="pl.149.8"></a><var>149.8</var>    Sec. 16. <b>CITY OF EAST GRAND FORKS; TAXES AUTHORIZED.</b><br/>
<a id="pl.149.9"></a><var>149.9</var>    Subdivision 1. <b>Sales and use tax authorization.</b> Notwithstanding Minnesota Statutes, <br/>
<a id="pl.149.10"></a><var>149.10</var>section 297A.99, subdivisions 1 and 2, or 477A.016, or any other law, ordinance, or
         city <br/>
<a id="pl.149.11"></a><var>149.11</var>charter, and as approved by the voters at a special election on March 7, 2016, the
         city of <br/>
<a id="pl.149.12"></a><var>149.12</var>East Grand Forks may impose, by ordinance, a sales and use tax of up to one percent
         for <br/>
<a id="pl.149.13"></a><var>149.13</var>the purposes specified in subdivision 2. Except as otherwise provided in this section,
         the <br/>
<a id="pl.149.14"></a><var>149.14</var>provisions of Minnesota Statutes, section 297A.99, govern the imposition, administration,
         <br/>
<a id="pl.149.15"></a><var>149.15</var>collection, and enforcement of the tax authorized under this subdivision.<br/>
<a id="pl.149.16"></a><var>149.16</var>    Subd. 2. <b>Use of sales and use tax revenues.</b> The revenues derived from the tax authorized <br/>
<a id="pl.149.17"></a><var>149.17</var>under subdivision 1 must be used by the city of East Grand Forks to pay the costs
         of <br/>
<a id="pl.149.18"></a><var>149.18</var>collecting and administering the tax and to finance the capital and administrative
         costs of <br/>
<a id="pl.149.19"></a><var>149.19</var>improvement to the city public swimming pool. Authorized expenses include, but are
         not <br/>
<a id="pl.149.20"></a><var>149.20</var>limited to, paying construction expenses related to the renovation and the development
         of <br/>
<a id="pl.149.21"></a><var>149.21</var>these facilities and improvements, and securing and paying debt service on bonds issued
         <br/>
<a id="pl.149.22"></a><var>149.22</var>under subdivision 3 or other obligations issued to finance improvement of the public
         <br/>
<a id="pl.149.23"></a><var>149.23</var>swimming pool in the city of East Grand Forks<br/>
<a id="pl.149.24"></a><var>149.24</var>    Subd. 3. <b>Bonding authority.</b> (a) The city of East Grand Forks may issue bonds under <br/>
<a id="pl.149.25"></a><var>149.25</var>Minnesota Statutes, chapter 475, to finance all or a portion of the costs of the facilities
         <br/>
<a id="pl.149.26"></a><var>149.26</var>authorized in subdivision 2. The aggregate principal amount of bonds issued under
         this <br/>
<a id="pl.149.27"></a><var>149.27</var>subdivision may not exceed $2,820,000, plus an amount to be applied to the payment
         of <br/>
<a id="pl.149.28"></a><var>149.28</var>the costs of issuing the bonds. The bonds may be paid from or secured by any funds
         available <br/>
<a id="pl.149.29"></a><var>149.29</var>to the city of East Grand Forks, including the tax authorized under subdivision 1.
         The <br/>
<a id="pl.149.30"></a><var>149.30</var>issuance of bonds under this subdivision is not subject to Minnesota Statutes, sections
         275.60 <br/>
<a id="pl.149.31"></a><var>149.31</var>and 275.61.<br/>
<a id="pl.149.32"></a><var>149.32</var>(b) The bonds are not included in computing any debt limitation applicable to the
         city <br/>
<a id="pl.149.33"></a><var>149.33</var>of East Grand Forks, and any levy of taxes under Minnesota Statutes, section 475.61,
         to <br/>
<a id="pl.150.1"></a><var>150.1</var>pay principal and interest on the bonds is not subject to any levy limitation. A separate
         <br/>
<a id="pl.150.2"></a><var>150.2</var>election to approve the bonds under Minnesota Statutes, section 475.58, is not required.<br/>
<a id="pl.150.3"></a><var>150.3</var>    Subd. 4. <b>Termination of taxes.</b> The tax imposed under subdivision 1 expires at the later <br/>
<a id="pl.150.4"></a><var>150.4</var>of: (1) five years after the tax is first imposed; or (2) when the city council determines
         that <br/>
<a id="pl.150.5"></a><var>150.5</var>$2,820,000 has been received from the tax to pay for the cost of the projects authorized
         <br/>
<a id="pl.150.6"></a><var>150.6</var>under subdivision 2, plus an amount sufficient to pay the costs related to issuance
         of the <br/>
<a id="pl.150.7"></a><var>150.7</var>bonds authorized under subdivision 3, including interest on the bonds. Any funds remaining
         <br/>
<a id="pl.150.8"></a><var>150.8</var>after payment of all such costs and retirement or redemption of the bonds shall be
         placed <br/>
<a id="pl.150.9"></a><var>150.9</var>in the general fund of the city. The tax imposed under subdivision 1 may expire at
         an earlier <br/>
<a id="pl.150.10"></a><var>150.10</var>time if the city so determines by ordinance.<br/>
<a id="pl.150.11"></a><var>150.11</var><b>EFFECTIVE DATE.</b>This section is effective the day after the governing body of the <br/>
<a id="pl.150.12"></a><var>150.12</var>city of East Grand Forks and its chief clerical officer comply with Minnesota Statutes,
         <br/>
<a id="pl.150.13"></a><var>150.13</var>section 645.021, subdivisions 2 and 3.<br/>
<br/>
<a id="bill.6.17.0"></a><a id="pl.150.14"></a><var>150.14</var>    Sec. 17. <b>CITY OF FAIRMONT; LOCAL TAX AUTHORIZED.</b><br/>
<a id="pl.150.15"></a><var>150.15</var>    Subdivision 1. <b>Sales and use tax authorization.</b> Notwithstanding Minnesota Statutes, <br/>
<a id="pl.150.16"></a><var>150.16</var>section 297A.99, subdivisions 1 and 2, or 477A.016, or any other law, ordinance, or
         city <br/>
<a id="pl.150.17"></a><var>150.17</var>charter, and as approved by the voters at the general election of November 8, 2016,
         the city <br/>
<a id="pl.150.18"></a><var>150.18</var>of Fairmont may impose, by ordinance, a sales and use tax of one-half of one percent
         for <br/>
<a id="pl.150.19"></a><var>150.19</var>the purposes specified in subdivision 2. Except as otherwise provided in this section,
         the <br/>
<a id="pl.150.20"></a><var>150.20</var>provisions of Minnesota Statutes, section 297A.99, govern the imposition, administration,
         <br/>
<a id="pl.150.21"></a><var>150.21</var>collection, and enforcement of the tax authorized under this subdivision.<br/>
<a id="pl.150.22"></a><var>150.22</var>    Subd. 2. <b>Use of sales and use tax revenues.</b> The revenues derived from the tax authorized <br/>
<a id="pl.150.23"></a><var>150.23</var>under subdivision 1 must be used by the city of Fairmont to pay the costs of collecting
         and <br/>
<a id="pl.150.24"></a><var>150.24</var>administering the tax and to finance the capital and administrative costs of constructing
         and <br/>
<a id="pl.150.25"></a><var>150.25</var>funding recreational amenities, trails, and a community center. The total that may
         be raised <br/>
<a id="pl.150.26"></a><var>150.26</var>from the tax to pay for these projects is limited to $15,000,000, plus the costs related
         to the <br/>
<a id="pl.150.27"></a><var>150.27</var>issuance and paying debt service on bonds for these projects.<br/>
<a id="pl.150.28"></a><var>150.28</var>    Subd. 3. <b>Bonding authority.</b> (a) The city of Fairmont may issue bonds under Minnesota <br/>
<a id="pl.150.29"></a><var>150.29</var>Statutes, chapter 475, to finance all or a portion of the costs of the facilities
         authorized in <br/>
<a id="pl.150.30"></a><var>150.30</var>subdivision 2. The aggregate principal amount of bonds issued under this subdivision
         may <br/>
<a id="pl.150.31"></a><var>150.31</var>not exceed $15,000,000, plus an amount to be applied to the payment of the costs of
         issuing <br/>
<a id="pl.150.32"></a><var>150.32</var>the bonds. The bonds may be paid from or secured by any funds available to the city
         of <br/>
<a id="pl.150.33"></a><var>150.33</var>Fairmont, including the tax authorized under subdivision 1. The issuance of bonds
         under <br/>
<a id="pl.150.34"></a><var>150.34</var>this subdivision is not subject to Minnesota Statutes, sections 275.60 and 275.61.<br/>
<a id="pl.151.1"></a><var>151.1</var>(b) The bonds are not included in computing any debt limitation applicable to the
         city <br/>
<a id="pl.151.2"></a><var>151.2</var>of Fairmont, and any levy of taxes under Minnesota Statutes, section 475.61, to pay
         principal <br/>
<a id="pl.151.3"></a><var>151.3</var>and interest on the bonds is not subject to any levy limitation. A separate election
         to approve <br/>
<a id="pl.151.4"></a><var>151.4</var>the bonds under Minnesota Statutes, section 475.58, is not required.<br/>
<a id="pl.151.5"></a><var>151.5</var>    Subd. 4. <b>Termination of taxes.</b> The tax imposed under subdivision 1 expires at the <br/>
<a id="pl.151.6"></a><var>151.6</var>earlier of: (1) 25 years after the tax is first imposed; or (2) when the city council
         determines <br/>
<a id="pl.151.7"></a><var>151.7</var>that $15,000,000, plus an amount sufficient to pay the costs related to issuing the
         bonds <br/>
<a id="pl.151.8"></a><var>151.8</var>authorized under subdivision 3, including interest on the bonds, has been received
         from the <br/>
<a id="pl.151.9"></a><var>151.9</var>tax to pay for the cost of the projects authorized under subdivision 2. Any funds
         remaining <br/>
<a id="pl.151.10"></a><var>151.10</var>after payment of all such costs and retirement or redemption of the bonds shall be
         placed <br/>
<a id="pl.151.11"></a><var>151.11</var>in the general fund of the city. The tax imposed under subdivision 1 may expire at
         an earlier <br/>
<a id="pl.151.12"></a><var>151.12</var>time if the city so determines by ordinance.<br/>
<a id="pl.151.13"></a><var>151.13</var><b>EFFECTIVE DATE.</b>This section is effective the day after the governing body of the <br/>
<a id="pl.151.14"></a><var>151.14</var>city of Fairmont and its chief clerical officer comply with Minnesota Statutes, section
         <br/>
<a id="pl.151.15"></a><var>151.15</var>645.021, subdivisions 2 and 3.<br/>
<br/>
<a id="bill.6.18.0"></a><a id="pl.151.16"></a><var>151.16</var>    Sec. 18. <b>CITY OF FERGUS FALLS; TAXES AUTHORIZED.</b><br/>
<a id="pl.151.17"></a><var>151.17</var>    Subdivision 1. <b>Sales and use tax authorized.</b> Notwithstanding Minnesota Statutes, <br/>
<a id="pl.151.18"></a><var>151.18</var>section 297A.99, subdivision 1, section 477A.016, or any other law, ordinance, or
         city <br/>
<a id="pl.151.19"></a><var>151.19</var>charter, and as approved by the voters at the November 8, 2016, general election,
         the city <br/>
<a id="pl.151.20"></a><var>151.20</var>of Fergus Falls may impose, by ordinance, a sales and use tax of up to one-half of
         one <br/>
<a id="pl.151.21"></a><var>151.21</var>percent for the purposes specified in subdivision 2. Except as otherwise provided
         in this <br/>
<a id="pl.151.22"></a><var>151.22</var>section, the provisions of Minnesota Statutes, section 297A.99, govern the imposition,
         <br/>
<a id="pl.151.23"></a><var>151.23</var>administration, collection, and enforcement of the tax authorized under this subdivision.<br/>
<a id="pl.151.24"></a><var>151.24</var>    Subd. 2. <b>Use of sales and use tax revenues.</b> The revenues from the tax authorized under <br/>
<a id="pl.151.25"></a><var>151.25</var>subdivision 1 must be used by the city of Fergus Falls to pay the costs of collecting
         and <br/>
<a id="pl.151.26"></a><var>151.26</var>administering the tax and securing and paying debt service on bonds issued to finance
         all <br/>
<a id="pl.151.27"></a><var>151.27</var>or part of the costs of the expansion and betterment of the Fergus Falls Public Library
         located <br/>
<a id="pl.151.28"></a><var>151.28</var>at 205 East Hampden Avenue in the city of Fergus Falls.<br/>
<a id="pl.151.29"></a><var>151.29</var>    Subd. 3. <b>Bonding authority.</b> (a) The city of Fergus Falls may issue bonds under <br/>
<a id="pl.151.30"></a><var>151.30</var>Minnesota Statutes, chapter 475, to finance all or a portion of the costs of the project
         <br/>
<a id="pl.151.31"></a><var>151.31</var>authorized in subdivision 2. The aggregate principal amount of bonds issued under
         this <br/>
<a id="pl.151.32"></a><var>151.32</var>subdivision may not exceed $9,800,000, plus an amount applied to the payment of costs
         of <br/>
<a id="pl.151.33"></a><var>151.33</var>issuing the bonds. The bonds may be paid from or secured by any funds available to
         the <br/>
<a id="pl.152.1"></a><var>152.1</var>city of Fergus Falls, including the tax authorized under subdivision 1. The issuance
         of bonds <br/>
<a id="pl.152.2"></a><var>152.2</var>under this subdivision is not subject to Minnesota Statutes, section 275.60 and 275.61.<br/>
<a id="pl.152.3"></a><var>152.3</var>(b) The bonds are not included in computing any debt limitation applicable to the
         city, <br/>
<a id="pl.152.4"></a><var>152.4</var>and any levy of taxes under Minnesota Statutes, section 475.61, to pay principal of
         and <br/>
<a id="pl.152.5"></a><var>152.5</var>interest on the bonds is not subject to any levy limitation. A separate election to
         approve <br/>
<a id="pl.152.6"></a><var>152.6</var>the bonds under Minnesota Statutes, section 475.58, is not required.<br/>
<a id="pl.152.7"></a><var>152.7</var>    Subd. 4. <b>Termination of taxes.</b> The tax imposed under subdivision 1 expires at the <br/>
<a id="pl.152.8"></a><var>152.8</var>earlier of: (1) 12 years after the tax is first imposed, or (2) when the city council
         determines <br/>
<a id="pl.152.9"></a><var>152.9</var>that $9,800,000 has been received from the tax to pay for the cost of the project
         authorized <br/>
<a id="pl.152.10"></a><var>152.10</var>under subdivision 2, plus an amount sufficient to pay the costs related to the issuance
         of the <br/>
<a id="pl.152.11"></a><var>152.11</var>bonds authorized under subdivision 3, including interest on the bonds. Any funds remaining
         <br/>
<a id="pl.152.12"></a><var>152.12</var>after payment of all such costs and retirement or redemption of the bonds shall be
         placed <br/>
<a id="pl.152.13"></a><var>152.13</var>in the general fund of the city. The tax imposed under subdivision 1 may expire at
         any <br/>
<a id="pl.152.14"></a><var>152.14</var>earlier time if the city so determines by ordinance.<br/>
<a id="pl.152.15"></a><var>152.15</var><b>EFFECTIVE DATE.</b>This section is effective the day after the governing body of the <br/>
<a id="pl.152.16"></a><var>152.16</var>city of Fergus Falls and its chief clerical officer comply with Minnesota Statutes,
         section <br/>
<a id="pl.152.17"></a><var>152.17</var>645.021, subdivisions 2 and 3.<br/>
<br/>
<a id="bill.6.19.0"></a><a id="pl.152.18"></a><var>152.18</var>    Sec. 19. <b>CITY OF MOOSE LAKE; TAXES AUTHORIZED.</b><br/>
<a id="pl.152.19"></a><var>152.19</var>    Subdivision 1. <b>Sales and use tax authorization.</b> Notwithstanding Minnesota Statutes, <br/>
<a id="pl.152.20"></a><var>152.20</var>section 297A.99, subdivision 1, or 477A.016, or any other law, ordinance, or city
         charter, <br/>
<a id="pl.152.21"></a><var>152.21</var>as approved by the voters at the November 6, 2012, general election, the city of Moose
         Lake <br/>
<a id="pl.152.22"></a><var>152.22</var>may impose, by ordinance, a sales and use tax of up to one-half of one percent for
         the <br/>
<a id="pl.152.23"></a><var>152.23</var>purposes specified in subdivision 2. Except as otherwise provided in this section,
         the <br/>
<a id="pl.152.24"></a><var>152.24</var>provisions of Minnesota Statutes, section 297A.99, govern the imposition, administration,
         <br/>
<a id="pl.152.25"></a><var>152.25</var>collection, and enforcement of the tax authorized under this subdivision.<br/>
<a id="pl.152.26"></a><var>152.26</var>    Subd. 2. <b>Use of sales and use tax revenues.</b> The revenues derived from the tax authorized <br/>
<a id="pl.152.27"></a><var>152.27</var>under subdivision 1 must be used by the city of Moose Lake to pay the costs of collecting
         <br/>
<a id="pl.152.28"></a><var>152.28</var>and administering the tax and to finance the costs of: (1) improvements to the city's
         park <br/>
<a id="pl.152.29"></a><var>152.29</var>system; (2) street and related infrastructure improvements; and (3) municipal arena
         <br/>
<a id="pl.152.30"></a><var>152.30</var>improvements. Authorized costs include construction and engineering costs and associated
         <br/>
<a id="pl.152.31"></a><var>152.31</var>bond costs.<br/>
<a id="pl.152.32"></a><var>152.32</var>    Subd. 3. <b>Bonding authority.</b> The city of Moose Lake may issue bonds under Minnesota <br/>
<a id="pl.152.33"></a><var>152.33</var>Statutes, chapter 475, to finance all or a portion of the costs of the facilities
         authorized in <br/>
<a id="pl.153.1"></a><var>153.1</var>subdivision 2. The aggregate principal amount of bonds issued under this subdivision
         may <br/>
<a id="pl.153.2"></a><var>153.2</var>not exceed $3,000,000, plus an amount to be applied to the payment of the costs of
         issuing <br/>
<a id="pl.153.3"></a><var>153.3</var>the bonds. The bonds may be paid from or secured by any funds available to the city
         of <br/>
<a id="pl.153.4"></a><var>153.4</var>Moose Lake, including the tax authorized under subdivision 1. The issuance of bonds
         under <br/>
<a id="pl.153.5"></a><var>153.5</var>this subdivision is not subject to Minnesota Statutes, sections 275.60 and 275.61.<br/>
<a id="pl.153.6"></a><var>153.6</var>The bonds are not included in computing any debt limitation applicable to the city
         of <br/>
<a id="pl.153.7"></a><var>153.7</var>Moose Lake, and any levy of taxes under Minnesota Statutes, section 475.61, to pay
         principal <br/>
<a id="pl.153.8"></a><var>153.8</var>and interest on the bonds is not subject to any levy limitation. A separate election
         to approve <br/>
<a id="pl.153.9"></a><var>153.9</var>the bonds under Minnesota Statutes, section 475.58, is not required.<br/>
<a id="pl.153.10"></a><var>153.10</var>    Subd. 4. <b>Termination of taxes.</b> The tax imposed under subdivision 1 expires at the <br/>
<a id="pl.153.11"></a><var>153.11</var>earlier of: (1) 20 years after the tax is first imposed; or (2) when the city council
         determines <br/>
<a id="pl.153.12"></a><var>153.12</var>that $3,000,000 has been received from the tax to pay for the cost of the projects
         authorized <br/>
<a id="pl.153.13"></a><var>153.13</var>under subdivision 2, plus an amount sufficient to pay the costs related to issuance
         of the <br/>
<a id="pl.153.14"></a><var>153.14</var>bonds authorized under subdivision 3, including interest on the bonds. Any funds remaining
         <br/>
<a id="pl.153.15"></a><var>153.15</var>after payment of all such costs and retirement or redemption of the bonds shall be
         placed <br/>
<a id="pl.153.16"></a><var>153.16</var>in the general fund of the city. The tax imposed under subdivision 1 may expire at
         an earlier <br/>
<a id="pl.153.17"></a><var>153.17</var>time if the city so determines by ordinance.<br/>
<a id="pl.153.18"></a><var>153.18</var><b>EFFECTIVE DATE.</b>This section is effective the day after the governing body of the <br/>
<a id="pl.153.19"></a><var>153.19</var>city of Moose Lake and its chief clerical officer comply with Minnesota Statutes,
         section <br/>
<a id="pl.153.20"></a><var>153.20</var>645.021, subdivisions 2 and 3.<br/>
<br/>
<a id="bill.6.20.0"></a><a id="pl.153.21"></a><var>153.21</var>    Sec. 20. <b>CITY OF NEW LONDON; TAX AUTHORIZED.</b><br/>
<a id="pl.153.22"></a><var>153.22</var>    Subdivision 1. <b>Sales and use tax authorization.</b> Notwithstanding Minnesota Statutes, <br/>
<a id="pl.153.23"></a><var>153.23</var>section 297A.99, subdivisions 1 and 2, or 477A.016, or any other law, ordinance, or
         city <br/>
<a id="pl.153.24"></a><var>153.24</var>charter, and as approved by the voters at the general election of November 8, 2016,
         the city <br/>
<a id="pl.153.25"></a><var>153.25</var>of New London may impose, by ordinance, a sales and use tax of one-half of one percent
         <br/>
<a id="pl.153.26"></a><var>153.26</var>for the purposes specified in subdivision 2. Except as otherwise provided in this
         section, <br/>
<a id="pl.153.27"></a><var>153.27</var>the provisions of Minnesota Statutes, section 297A.99, govern the imposition, administration,
         <br/>
<a id="pl.153.28"></a><var>153.28</var>collection, and enforcement of the tax authorized under this subdivision.<br/>
<a id="pl.153.29"></a><var>153.29</var>    Subd. 2. <b>Use of sales and use tax revenues.</b> The revenues derived from the tax authorized <br/>
<a id="pl.153.30"></a><var>153.30</var>under subdivision 1 must be used by the city of New London to pay the costs of collecting
         <br/>
<a id="pl.153.31"></a><var>153.31</var>and administering the tax and to finance the capital and administrative costs of the
         following <br/>
<a id="pl.153.32"></a><var>153.32</var>projects:<br/>
 <a id="pl.153.33"></a><var>153.33</var>(1) construction and equipping of a new library and community room;<br/>
<a id="pl.154.1"></a><var>154.1</var>(2) construction of an ambulance bay at the fire hall; and<br/>
<a id="pl.154.2"></a><var>154.2</var>(3) improvements to the New London Senior Citizen Center.<br/>
<a id="pl.154.3"></a><var>154.3</var>The total that may be raised from the tax to pay for these projects is limited to
         $872,000 <br/>
<a id="pl.154.4"></a><var>154.4</var>plus the costs related to the issuance and paying debt service on bonds for these
         projects.<br/>
<a id="pl.154.5"></a><var>154.5</var>    Subd. 3. <b>Bonding authority.</b> (a) The city of New London may issue bonds under <br/>
<a id="pl.154.6"></a><var>154.6</var>Minnesota Statutes, chapter 475, to finance all or a portion of the costs of the facilities
         <br/>
<a id="pl.154.7"></a><var>154.7</var>authorized in subdivision 2. The aggregate principal amount of bonds issued under
         this <br/>
<a id="pl.154.8"></a><var>154.8</var>subdivision may not exceed $872,000, plus an amount to be applied to the payment of
         the <br/>
<a id="pl.154.9"></a><var>154.9</var>costs of issuing the bonds. The bonds may be paid from or secured by any funds available
         <br/>
<a id="pl.154.10"></a><var>154.10</var>to the city of New London, including the tax authorized under subdivision 1. The issuance
         <br/>
<a id="pl.154.11"></a><var>154.11</var>of bonds under this subdivision is not subject to Minnesota Statutes, sections 275.60
         and <br/>
<a id="pl.154.12"></a><var>154.12</var>275.61.<br/>
<a id="pl.154.13"></a><var>154.13</var>(b) The bonds are not included in computing any debt limitation applicable to the
         city <br/>
<a id="pl.154.14"></a><var>154.14</var>of New London, and any levy of taxes under Minnesota Statutes, section 475.61, to
         pay <br/>
<a id="pl.154.15"></a><var>154.15</var>principal and interest on the bonds is not subject to any levy limitation. A separate
         election <br/>
<a id="pl.154.16"></a><var>154.16</var>to approve the bonds under Minnesota Statutes, section 475.58, is not required.<br/>
<a id="pl.154.17"></a><var>154.17</var>    Subd. 4. <b>Termination of taxes.</b> The tax imposed under subdivision 1 expires at the <br/>
<a id="pl.154.18"></a><var>154.18</var>earlier of: (1) 20 years after the tax is first imposed; or (2) when the city council
         determines <br/>
<a id="pl.154.19"></a><var>154.19</var>that $872,000, plus an amount sufficient to pay the costs related to issuing the bonds
         <br/>
<a id="pl.154.20"></a><var>154.20</var>authorized under subdivision 3, including interest on the bonds, has been received
         from the <br/>
<a id="pl.154.21"></a><var>154.21</var>tax to pay for the cost of the projects authorized under subdivision 2. Any funds
         remaining <br/>
<a id="pl.154.22"></a><var>154.22</var>after payment of all such costs and retirement or redemption of the bonds shall be
         placed <br/>
<a id="pl.154.23"></a><var>154.23</var>in the general fund of the city. The tax imposed under subdivision 1 may expire at
         an earlier <br/>
<a id="pl.154.24"></a><var>154.24</var>time if the city so determines by ordinance.<br/>
<a id="pl.154.25"></a><var>154.25</var><b>EFFECTIVE DATE.</b>This section is effective the day after the governing body of the <br/>
<a id="pl.154.26"></a><var>154.26</var>city of New London and its chief clerical officer comply with Minnesota Statutes,
         section <br/>
<a id="pl.154.27"></a><var>154.27</var>645.021, subdivisions 2 and 3.<br/>
<br/>
<a id="bill.6.21.0"></a><a id="pl.154.28"></a><var>154.28</var>    Sec. 21. <b>CITY OF SLEEPY EYE; LODGING TAX.</b><br/>
<a id="pl.154.29"></a><var>154.29</var>Notwithstanding Minnesota Statutes, section 477A.016, or any other provision of law,
         <br/>
<a id="pl.154.30"></a><var>154.30</var>ordinance, or city charter, the city council for the city of Sleepy Eye may impose,
         by <br/>
<a id="pl.154.31"></a><var>154.31</var>ordinance, a tax of up to two percent on the gross receipts subject to the lodging
         tax under <br/>
<a id="pl.154.32"></a><var>154.32</var>Minnesota Statutes, section 469.190. This tax is in addition to any tax imposed under
         <br/>
<a id="pl.154.33"></a><var>154.33</var>Minnesota Statutes, section 469.190, and the total tax imposed under that section
         and this <br/>
<a id="pl.155.1"></a><var>155.1</var>provision must not exceed five percent. Revenue from the tax imposed under this section
         <br/>
<a id="pl.155.2"></a><var>155.2</var>may only be used for the same purposes as a tax imposed under Minnesota Statutes,
         section <br/>
<a id="pl.155.3"></a><var>155.3</var>469.190.<br/>
<a id="pl.155.4"></a><var>155.4</var><b>EFFECTIVE DATE.</b>This section is effective the day after the governing body of the <br/>
<a id="pl.155.5"></a><var>155.5</var>city of Sleepy Eye and its chief clerical officer comply with Minnesota Statutes,
         section <br/>
<a id="pl.155.6"></a><var>155.6</var>645.021, subdivisions 2 and 3.<br/>
<br/>
<a id="bill.6.22.0"></a><a id="pl.155.7"></a><var>155.7</var>    Sec. 22. <b>CITY OF SPICER; TAX AUTHORIZED.</b><br/>
<a id="pl.155.8"></a><var>155.8</var>    Subdivision 1. <b>Sales and use tax authorization.</b> Notwithstanding Minnesota Statutes, <br/>
<a id="pl.155.9"></a><var>155.9</var>section 297A.99, subdivisions 1 and 2, or 477A.016, or any other law, ordinance, or
         city <br/>
<a id="pl.155.10"></a><var>155.10</var>charter, and as approved by the voters at the general election of November 8, 2016,
         the city <br/>
<a id="pl.155.11"></a><var>155.11</var>of Spicer may impose, by ordinance, a sales and use tax of one-half of one percent
         for the <br/>
<a id="pl.155.12"></a><var>155.12</var>purposes specified in subdivision 2. Except as otherwise provided in this section,
         the <br/>
<a id="pl.155.13"></a><var>155.13</var>provisions of Minnesota Statutes, section 297A.99, govern the imposition, administration,
         <br/>
<a id="pl.155.14"></a><var>155.14</var>collection, and enforcement of the tax authorized under this subdivision.<br/>
<a id="pl.155.15"></a><var>155.15</var>    Subd. 2. <b>Use of sales and use tax revenues.</b> The revenues derived from the tax authorized <br/>
<a id="pl.155.16"></a><var>155.16</var>under subdivision 1 must be used by the city of Spicer to pay the costs of collecting
         and <br/>
<a id="pl.155.17"></a><var>155.17</var>administering the tax and to finance the capital and administrative costs of the following
         <br/>
<a id="pl.155.18"></a><var>155.18</var>projects:<br/>
 <a id="pl.155.19"></a><var>155.19</var>(1) pedestrian public safety improvements such as a pedestrian bridge or crosswalk
         <br/>
<a id="pl.155.20"></a><var>155.20</var>signals at marked Trunk Highway 23;<br/>
<a id="pl.155.21"></a><var>155.21</var>(2) park and trail capital improvements including signage for bicycle share the road
         <br/>
<a id="pl.155.22"></a><var>155.22</var>improvements and replacement of playground and related facilities; and<br/>
<a id="pl.155.23"></a><var>155.23</var>(3) capital improvements to regional community facilities such as the Dethelfs roof
         and <br/>
<a id="pl.155.24"></a><var>155.24</var>window replacement and the Pioneerland branch library roof replacement.<br/>
<a id="pl.155.25"></a><var>155.25</var>    Subd. 3. <b>Termination of taxes.</b> The tax imposed under subdivision 1 expires at the <br/>
<a id="pl.155.26"></a><var>155.26</var>earlier of: (1) ten years after the tax is first imposed; or (2) December 31, 2027.
         All funds <br/>
<a id="pl.155.27"></a><var>155.27</var>not used to pay collection and administration costs of the tax must be used for projects
         listed <br/>
<a id="pl.155.28"></a><var>155.28</var>in subdivision 2. The tax imposed under subdivision 1 may expire at an earlier time
         if the <br/>
<a id="pl.155.29"></a><var>155.29</var>city so determines by ordinance.<br/>
<a id="pl.155.30"></a><var>155.30</var><b>EFFECTIVE DATE.</b>This section is effective the day after the governing body of the <br/>
<a id="pl.155.31"></a><var>155.31</var>city of Spicer and its chief clerical officer comply with Minnesota Statutes, section
         645.021, <br/>
<a id="pl.155.32"></a><var>155.32</var>subdivisions 2 and 3.<br/>
<br/>
<a id="bill.6.23.0"></a><a id="pl.156.1"></a><var>156.1</var>    Sec. 23. <b>CITY OF WALKER; LOCAL TAXES AUTHORIZED.</b><br/>
<a id="pl.156.2"></a><var>156.2</var>    Subdivision 1. <b>Sales and use tax authorized.</b> Notwithstanding Minnesota Statutes, <br/>
<a id="pl.156.3"></a><var>156.3</var>section 477A.016, or any ordinance, city charter, or other provision of law, pursuant
         to the <br/>
<a id="pl.156.4"></a><var>156.4</var>approval of the voters at the general election on November 6, 2012, the city of Walker
         may <br/>
<a id="pl.156.5"></a><var>156.5</var>impose by ordinance a sales and use tax of 1-1/2 percent for the purposes specified
         in <br/>
<a id="pl.156.6"></a><var>156.6</var>subdivision 2. The provisions of Minnesota Statutes, section 297A.99, govern the imposition,
         <br/>
<a id="pl.156.7"></a><var>156.7</var>administration, collection, and enforcement of the taxes authorized under this subdivision.<br/>
<a id="pl.156.8"></a><var>156.8</var>    Subd. 2. <b>Use of revenues.</b> Revenues received from the tax authorized by subdivision 1 <br/>
<a id="pl.156.9"></a><var>156.9</var>must be used to pay all or part of the capital and administrative costs of underground
         utility, <br/>
<a id="pl.156.10"></a><var>156.10</var>street, curb, gutter, and sidewalk improvements in the city of Walker as outlined
         in the 2012 <br/>
<a id="pl.156.11"></a><var>156.11</var>capital improvement plan of the engineer of the city of Walker.<br/>
<a id="pl.156.12"></a><var>156.12</var>    Subd. 3. <b>Bonding authority.</b> The city of Walker, pursuant to the approval of the voters <br/>
<a id="pl.156.13"></a><var>156.13</var>at the November 6, 2012, referendum authorizing the imposition of the taxes in this
         section, <br/>
<a id="pl.156.14"></a><var>156.14</var>may issue bonds under Minnesota Statutes, chapter 475, to pay capital and administrative
         <br/>
<a id="pl.156.15"></a><var>156.15</var>expenses for the projects described in subdivision 2, in an amount that does not exceed
         <br/>
<a id="pl.156.16"></a><var>156.16</var>$20,000,000. A separate election to approve the bonds under Minnesota Statutes, section
         <br/>
<a id="pl.156.17"></a><var>156.17</var>475.58, is not required.<br/>
<a id="pl.156.18"></a><var>156.18</var>    Subd. 4. <b>Termination of tax.</b> (a) The tax authorized under subdivision 1 terminates at <br/>
<a id="pl.156.19"></a><var>156.19</var>the earlier of:<br/>
 <a id="pl.156.20"></a><var>156.20</var>(1) 20 years after the date of initial imposition of the tax; or<br/>
<a id="pl.156.21"></a><var>156.21</var>(2) when the city council determines that sufficient funds have been raised from the
         tax <br/>
<a id="pl.156.22"></a><var>156.22</var>to finance the capital and administrative costs of the improvements described in subdivision
         <br/>
<a id="pl.156.23"></a><var>156.23</var>2, plus the additional amount needed to pay the costs related to issuance of bonds
         under <br/>
<a id="pl.156.24"></a><var>156.24</var>subdivision 3, including interest on the bonds.<br/>
<a id="pl.156.25"></a><var>156.25</var>(b) Any funds remaining after completion of the projects specified in subdivision
         2 and <br/>
<a id="pl.156.26"></a><var>156.26</var>retirement or redemption of bonds in subdivision 3 shall be placed in the general
         fund of <br/>
<a id="pl.156.27"></a><var>156.27</var>the city. The tax imposed under subdivision 1 may expire at an earlier time if the
         city so <br/>
<a id="pl.156.28"></a><var>156.28</var>determines by ordinance.<br/>
<a id="pl.156.29"></a><var>156.29</var><b>EFFECTIVE DATE.</b>This section is effective the day after the governing body of the <br/>
<a id="pl.156.30"></a><var>156.30</var>city of Walker and its chief clerical officer comply with Minnesota Statutes, section
         645.021, <br/>
<a id="pl.156.31"></a><var>156.31</var>subdivisions 2 and 3.<br/>
<br/>
<a id="bill.6.24.0"></a><a id="pl.157.1"></a><var>157.1</var>    Sec. 24. <b>CITY OF WINDOM; TAXES AUTHORIZED.</b><br/>
<a id="pl.157.2"></a><var>157.2</var>    Subdivision 1. <b>Sales and use tax authorized.</b> Notwithstanding Minnesota Statutes, <br/>
<a id="pl.157.3"></a><var>157.3</var>section 477A.016, or any other provision of law, ordinance, or city charter, as approved
         by <br/>
<a id="pl.157.4"></a><var>157.4</var>the voters at the general election held on November 8, 2016, the city of Windom may
         impose <br/>
<a id="pl.157.5"></a><var>157.5</var>by ordinance a sales and use tax of up to one percent for the purposes specified in
         subdivision <br/>
<a id="pl.157.6"></a><var>157.6</var>3. Except as provided in this section, the provisions of Minnesota Statutes, section
         297A.99, <br/>
<a id="pl.157.7"></a><var>157.7</var>govern the imposition, administration, collection, and enforcement of the tax authorized
         <br/>
<a id="pl.157.8"></a><var>157.8</var>under this subdivision.<br/>
<a id="pl.157.9"></a><var>157.9</var>    Subd. 2. <b>Use of revenues.</b> The proceeds of the tax imposed under this section must be <br/>
<a id="pl.157.10"></a><var>157.10</var>used to pay for the cost of collecting the tax and to pay all or a portion of the
         expenses of <br/>
<a id="pl.157.11"></a><var>157.11</var>constructing and improving a fire hall and a public safety facility, including any
         associated <br/>
<a id="pl.157.12"></a><var>157.12</var>bond costs.<br/>
<a id="pl.157.13"></a><var>157.13</var>    Subd. 3. <b>Bonding authority.</b> The city of Windom, pursuant to the approval of the voters <br/>
<a id="pl.157.14"></a><var>157.14</var>at the referendum authorizing the imposition of tax in this section, may issue bonds
         under <br/>
<a id="pl.157.15"></a><var>157.15</var>Minnesota Statutes, chapter 475, to pay capital and administrative expenses for the
         project <br/>
<a id="pl.157.16"></a><var>157.16</var>described in subdivision 2. A separate election to approve the bonds under Minnesota
         <br/>
<a id="pl.157.17"></a><var>157.17</var>Statutes, section 475.58, is not required.<br/>
<a id="pl.157.18"></a><var>157.18</var>    Subd. 4. <b>Termination of tax.</b> (a) The tax authorized under subdivision 1 terminates at <br/>
<a id="pl.157.19"></a><var>157.19</var>the earlier of:<br/>
<a id="pl.157.20"></a><var>157.20</var>(1) 15 years after the date of initial imposition of the tax; or<br/>
<a id="pl.157.21"></a><var>157.21</var>(2) when $3,500,000 has been collected.<br/>
<a id="pl.157.22"></a><var>157.22</var>(b) Any funds remaining after completion of the projects specified in subdivision 2 may
         <br/>
<a id="pl.157.23"></a><var>157.23</var>be placed in the general fund of the city. The tax imposed under subdivision 1 may
         expire <br/>
<a id="pl.157.24"></a><var>157.24</var>at an earlier time if the city so determines by ordinance.<br/>
<a id="pl.157.25"></a><var>157.25</var><b>EFFECTIVE DATE.</b>This section is effective the day after the governing body of the <br/>
<a id="pl.157.26"></a><var>157.26</var>city of Windom and its chief clerical officer comply with Minnesota Statutes, section
         <br/>
<a id="pl.157.27"></a><var>157.27</var>645.021, subdivisions 2 and 3.<br/>
<br/>
<a id="bill.6.25.0"></a><a id="pl.157.28"></a><var>157.28</var>    Sec. 25. <b>CLAY COUNTY; TAX AUTHORIZED.</b><br/>
<a id="pl.157.29"></a><var>157.29</var>    Subdivision 1. <b>Sales and use tax authorization.</b> Notwithstanding Minnesota Statutes, <br/>
<a id="pl.157.30"></a><var>157.30</var>section 297A.99, subdivisions 1 and 2, or 477A.016, or any other law or ordinance,
         and as <br/>
<a id="pl.157.31"></a><var>157.31</var>approved by the voters at the November 8, 2016, general election, Clay County may
         impose, <br/>
<a id="pl.157.32"></a><var>157.32</var>by ordinance, a sales and use tax of up to one-half of one percent for the purposes
         specified <br/>
<a id="pl.158.1"></a><var>158.1</var>in subdivision 2. Except as otherwise provided in this section, the provisions of
         Minnesota <br/>
<a id="pl.158.2"></a><var>158.2</var>Statutes, section 297A.99, govern the imposition, administration, collection, and
         enforcement <br/>
<a id="pl.158.3"></a><var>158.3</var>of the tax authorized under this subdivision.<br/>
<a id="pl.158.4"></a><var>158.4</var>    Subd. 2. <b>Use of sales and use tax revenues.</b> The revenues derived from the tax authorized <br/>
<a id="pl.158.5"></a><var>158.5</var>under subdivision 1 must be used by Clay County to pay the costs of collecting and
         <br/>
<a id="pl.158.6"></a><var>158.6</var>administering the tax and to finance the capital and administrative costs of constructing
         and <br/>
<a id="pl.158.7"></a><var>158.7</var>equipping a new correctional facility, law enforcement center, and related parking
         facility. <br/>
<a id="pl.158.8"></a><var>158.8</var>Authorized expenses include but are not limited to paying design, development, and
         <br/>
<a id="pl.158.9"></a><var>158.9</var>construction costs related to these facilities and improvements, and securing and
         paying <br/>
<a id="pl.158.10"></a><var>158.10</var>debt service on bonds issued under subdivision 3 or other obligations issued to finance
         the <br/>
<a id="pl.158.11"></a><var>158.11</var>facilities listed in this subdivision.<br/>
<a id="pl.158.12"></a><var>158.12</var>    Subd. 3. <b>Bonding authority.</b> Clay County may issue bonds under Minnesota Statutes, <br/>
<a id="pl.158.13"></a><var>158.13</var>chapter 475, to finance all or a portion of the costs of the facilities authorized
         in subdivision <br/>
<a id="pl.158.14"></a><var>158.14</var>2. The aggregate principal amount of bonds issued under this subdivision may not exceed
         <br/>
<a id="pl.158.15"></a><var>158.15</var>$52,000,000, plus an amount to be applied to the payment of the costs of issuing the
         bonds. <br/>
<a id="pl.158.16"></a><var>158.16</var>The bonds may be paid from or secured by any funds available to Clay County, including
         <br/>
<a id="pl.158.17"></a><var>158.17</var>the tax authorized under subdivision 1. The issuance of bonds under this subdivision
         is not <br/>
<a id="pl.158.18"></a><var>158.18</var>subject to Minnesota Statutes, sections 275.60 and 275.61.<br/>
<a id="pl.158.19"></a><var>158.19</var>    Subd. 4. <b>Termination of taxes.</b> The tax imposed under subdivision 1 expires at the <br/>
<a id="pl.158.20"></a><var>158.20</var>earlier of: (1) 20 years after the tax is first imposed; or (2) when the county board
         determines <br/>
<a id="pl.158.21"></a><var>158.21</var>that $52,000,000, plus an amount sufficient to pay the costs related to issuance of
         the bonds <br/>
<a id="pl.158.22"></a><var>158.22</var>authorized under subdivision 3, including interest on the bonds, has been received
         from the <br/>
<a id="pl.158.23"></a><var>158.23</var>tax to pay for the cost of the projects authorized under subdivision 2. Any funds
         remaining <br/>
<a id="pl.158.24"></a><var>158.24</var>after payment of all such costs and retirement or redemption of the bonds shall be
         placed <br/>
<a id="pl.158.25"></a><var>158.25</var>in the general fund of the county. The tax imposed under subdivision 1 may expire
         at an <br/>
<a id="pl.158.26"></a><var>158.26</var>earlier time if the county so determines by ordinance.<br/>
<a id="pl.158.27"></a><var>158.27</var><b>EFFECTIVE DATE.</b>This section is effective the day after the governing body of Clay <br/>
<a id="pl.158.28"></a><var>158.28</var>County and its chief clerical officer comply with Minnesota Statutes, section 645.021,
         <br/>
<a id="pl.158.29"></a><var>158.29</var>subdivisions 2 and 3.<br/>
<br/>
<a id="bill.6.26.0"></a><a id="pl.158.30"></a><var>158.30</var>    Sec. 26. <b>GARRISON, KATHIO, WEST MILLE LACS LAKE SANITARY </b><br/>
<a id="pl.158.31"></a><var>158.31</var><b>DISTRICT; TAXES AUTHORIZED.</b><br/>
<a id="pl.158.32"></a><var>158.32</var>    Subdivision 1. <b>Sales and use tax authorization.</b> Notwithstanding Minnesota Statutes, <br/>
<a id="pl.158.33"></a><var>158.33</var>section 297A.99, subdivisions 1 and 2, or 477A.016, or any other law, and as approved
         by <br/>
<a id="pl.158.34"></a><var>158.34</var>the voters at the November 8, 2016, general election, the Garrison, Kathio, West Mille
         Lacs <br/>
<a id="pl.159.1"></a><var>159.1</var>Lake Sanitary District may impose, by majority vote of the governing body of the district,
         <br/>
<a id="pl.159.2"></a><var>159.2</var>a sales and use tax of up to one percent for the purposes specified in subdivision
         2. Except <br/>
<a id="pl.159.3"></a><var>159.3</var>as otherwise provided in this section, the provisions of Minnesota Statutes, section
         297A.99, <br/>
<a id="pl.159.4"></a><var>159.4</var>govern the imposition, administration, collection, and enforcement of the tax authorized
         <br/>
<a id="pl.159.5"></a><var>159.5</var>under this subdivision.<br/>
<a id="pl.159.6"></a><var>159.6</var>    Subd. 2. <b>Use of sales and use tax revenues.</b> The revenues derived from the tax authorized <br/>
<a id="pl.159.7"></a><var>159.7</var>under subdivision 1 must be used by the Garrison, Kathio, West Mille Lacs Lake Sanitary
         <br/>
<a id="pl.159.8"></a><var>159.8</var>District to pay the costs of collecting and administering the tax and to repay general
         obligation <br/>
<a id="pl.159.9"></a><var>159.9</var>revenue notes issued or other debt incurred for the construction of the wastewater
         collection <br/>
<a id="pl.159.10"></a><var>159.10</var>system through the Minnesota Public Facilities Authority, general obligation disposal
         system <br/>
<a id="pl.159.11"></a><var>159.11</var>bonds issued to finance the expense incurred in financing construction of sewer system
         <br/>
<a id="pl.159.12"></a><var>159.12</var>improvements, and notes payable issued for costs associated with the sewer services
         <br/>
<a id="pl.159.13"></a><var>159.13</var>agreement between the Garrison, Kathio, West Mille Lacs Lake Sanitary District and
         ML <br/>
<a id="pl.159.14"></a><var>159.14</var>Wastewater Inc., and any other costs associated with system maintenance and improvements,
         <br/>
<a id="pl.159.15"></a><var>159.15</var>including extension of the system to unserved customers as determined by the governing
         <br/>
<a id="pl.159.16"></a><var>159.16</var>body of the district.<br/>
<a id="pl.159.17"></a><var>159.17</var>    Subd. 3. <b>Bonds.</b> The Garrison, Kathio, West Mille Lacs Lake Sanitary District, pursuant <br/>
<a id="pl.159.18"></a><var>159.18</var>to the approval of the voters at the November 8, 2016, referendum authorizing the
         imposition <br/>
<a id="pl.159.19"></a><var>159.19</var>of the tax under this section, may issue general obligation disposal system bonds
         for financing <br/>
<a id="pl.159.20"></a><var>159.20</var>construction of sewer system improvements without a separate election required under
         <br/>
<a id="pl.159.21"></a><var>159.21</var>Minnesota Statutes, section 442.25 or 475.58. The amount of bonds that may be issued
         <br/>
<a id="pl.159.22"></a><var>159.22</var>without a separate election is equal to $10,000,000 minus the amount of the tax revenue
         <br/>
<a id="pl.159.23"></a><var>159.23</var>under this section committed to repay other notes as allowed under subdivision 2.<br/>
<a id="pl.159.24"></a><var>159.24</var>    Subd. 4. <b>Termination of taxes.</b> The tax imposed under subdivision 1 expires at the <br/>
<a id="pl.159.25"></a><var>159.25</var>earlier of: (1) 20 years after the tax is first imposed; or (2) when the governing
         body of the <br/>
<a id="pl.159.26"></a><var>159.26</var>Garrison, Kathio, West Mille Lacs Lake Sanitary District determines that $10,000,000
         has <br/>
<a id="pl.159.27"></a><var>159.27</var>been received from the tax to pay for the costs authorized under subdivision 2. Any
         funds <br/>
<a id="pl.159.28"></a><var>159.28</var>remaining after payment of all such costs and retirement or redemption of the bonds
         shall <br/>
<a id="pl.159.29"></a><var>159.29</var>be placed in the general fund of the district. The tax imposed under subdivision 1
         may expire <br/>
<a id="pl.159.30"></a><var>159.30</var>at an earlier time if the governing body of the district so determines.<br/>
<a id="pl.159.31"></a><var>159.31</var><b>EFFECTIVE DATE.</b>This section is effective the day after the governing body of the <br/>
<a id="pl.159.32"></a><var>159.32</var>Garrison, Kathio, West Mille Lacs Lake Sanitary District and its chief clerical officer
         comply <br/>
<a id="pl.159.33"></a><var>159.33</var>with Minnesota Statutes, section 645.021, subdivisions 2 and 3.<br/>
<br/>
<a id="bill.6.27.0"></a><a id="pl.160.1"></a><var>160.1</var>    Sec. 27. <b>EFFECTIVE DATE; VALIDATION OF PRIOR ACT.</b><br/>
<a id="pl.160.2"></a><var>160.2</var>Notwithstanding the time limits in Minnesota Statutes, section 645.021, the city of
         <br/>
<a id="pl.160.3"></a><var>160.3</var>Proctor may approve Laws 2008, chapter 366, article 7, section 13, and Laws 2010,
         chapter <br/>
<a id="pl.160.4"></a><var>160.4</var>389, article 5, sections 1 and 2, and file its approval with the secretary of state
         by January <br/>
<a id="pl.160.5"></a><var>160.5</var>1, 2015. If approved under this paragraph, actions undertaken by the city pursuant
         to the <br/>
<a id="pl.160.6"></a><var>160.6</var>approval of the voters on November 2, 2010, and otherwise in accordance with those
         laws <br/>
<a id="pl.160.7"></a><var>160.7</var>are validated.<br/>
<a id="pl.160.8"></a><var>160.8</var><b>EFFECTIVE DATE.</b>This section is effective the day after the governing body of the <br/>
<a id="pl.160.9"></a><var>160.9</var>city of Proctor and its chief clerical officer comply with Minnesota Statutes, section
         645.021, <br/>
<a id="pl.160.10"></a><var>160.10</var>subdivisions 2 and 3.<br/>
<br/>
<a id="bill.7.0.0"></a>

<a id="bill.7.1.0"></a><a id="pl.160.13"></a><var>160.13</var>    Section 1. Minnesota Statutes 2016, section 366.095, subdivision 1, is amended to read:<br/>
<a id="pl.160.14"></a><var>160.14</var>    Subdivision 1. <b>Certificates of indebtedness.</b> The town board may issue certificates of <br/>
<a id="pl.160.15"></a><var>160.15</var>indebtedness within the debt limits for a town purpose otherwise authorized by law.
         The <br/>
<a id="pl.160.16"></a><var>160.16</var>certificates shall be payable in not more than ten years and be issued on the terms
         and in <br/>
<a id="pl.160.17"></a><var>160.17</var>the manner as the board may determine, provided that notes issued for projects that eliminate <br/>
<a id="pl.160.18"></a><var>160.18</var>R-22, as defined in section 240A.09, paragraph (b), clause (2), must be payable in
         not more <br/>
<a id="pl.160.19"></a><var>160.19</var>than 20 years. If the amount of the certificates to be issued exceeds 0.25 percent of the <br/>
<a id="pl.160.20"></a><var>160.20</var>estimated market value of the town, they shall not be issued for at least ten days
         after <br/>
<a id="pl.160.21"></a><var>160.21</var>publication in a newspaper of general circulation in the town of the board's resolution
         <br/>
<a id="pl.160.22"></a><var>160.22</var>determining to issue them. If within that time, a petition asking for an election
         on the <br/>
<a id="pl.160.23"></a><var>160.23</var>proposition signed by voters equal to ten percent of the number of voters at the last
         regular <br/>
<a id="pl.160.24"></a><var>160.24</var>town election is filed with the clerk, the certificates shall not be issued until
         their issuance <br/>
<a id="pl.160.25"></a><var>160.25</var>has been approved by a majority of the votes cast on the question at a regular or
         special <br/>
<a id="pl.160.26"></a><var>160.26</var>election. A tax levy shall be made to pay the principal and interest on the certificates
         as in <br/>
<a id="pl.160.27"></a><var>160.27</var>the case of bonds.<br/>
<br/>
<a id="bill.7.2.0"></a><a id="pl.160.28"></a><var>160.28</var>    Sec. 2. Minnesota Statutes 2016, section 383B.117, subdivision 2, is amended to read:<br/>
<a id="pl.160.29"></a><var>160.29</var>    Subd. 2. <b>Equipment acquisition; capital notes.</b> The board may, by resolution and <br/>
<a id="pl.160.30"></a><var>160.30</var>without public referendum, issue capital notes within existing debt limits for the
         purpose <br/>
<a id="pl.160.31"></a><var>160.31</var>of purchasing ambulance and other medical equipment, road construction or maintenance
         <br/>
<a id="pl.160.32"></a><var>160.32</var>equipment, public safety equipment and other capital equipment having an expected
         useful <br/>
<a id="pl.160.33"></a><var>160.33</var>life at least equal to the term of the notes issued. The notes shall be payable in
         not more <br/>
<a id="pl.161.1"></a><var>161.1</var>than ten years and shall be issued on terms and in a manner as the board determines, provided <br/>
<a id="pl.161.2"></a><var>161.2</var>that notes issued for projects that eliminate R-22, as defined in section 240A.09,
         paragraph <br/>
<a id="pl.161.3"></a><var>161.3</var>(b), clause (2), must be payable in not more than 20 years. The total principal amount of <br/>
<a id="pl.161.4"></a><var>161.4</var>the notes issued for any fiscal year shall not exceed one percent of the total annual
         budget <br/>
<a id="pl.161.5"></a><var>161.5</var>for that year and shall be issued solely for the purchases authorized in this subdivision.
         A <br/>
<a id="pl.161.6"></a><var>161.6</var>tax levy shall be made for the payment of the principal and interest on such notes
         as in the <br/>
<a id="pl.161.7"></a><var>161.7</var>case of bonds. For purposes of this subdivision, "equipment" includes computer hardware
         <br/>
<a id="pl.161.8"></a><var>161.8</var>and software, whether bundled with machinery or equipment or unbundled. For purposes
         <br/>
<a id="pl.161.9"></a><var>161.9</var>of this subdivision, the term "medical equipment" includes computer hardware and software
         <br/>
<a id="pl.161.10"></a><var>161.10</var>and other intellectual property for use in medical diagnosis, medical procedures,
         research, <br/>
<a id="pl.161.11"></a><var>161.11</var>record keeping, billing, and other hospital applications, together with application
         development <br/>
<a id="pl.161.12"></a><var>161.12</var>services and training related to the use of the computer hardware and software and
         other <br/>
<a id="pl.161.13"></a><var>161.13</var>intellectual property, all without regard to their useful life. For purposes of determining
         the <br/>
<a id="pl.161.14"></a><var>161.14</var>amount of capital notes which the county may issue in any year, the budget of the
         county <br/>
<a id="pl.161.15"></a><var>161.15</var>and Hennepin Healthcare System, Inc. shall be combined and the notes issuable under
         this <br/>
<a id="pl.161.16"></a><var>161.16</var>subdivision shall be in addition to obligations issuable under section 
         <statute_ref>373.01, subdivision <br/>
<a id="pl.161.17"></a><var>161.17</var>3
         </statute_ref>.<br/>
<br/>
<a id="bill.7.3.0"></a><a id="pl.161.18"></a><var>161.18</var>    Sec. 3. Minnesota Statutes 2016, section 410.32, is amended to read:<br/>
<a id="pl.161.19"></a><var>161.19</var><b>410.32 CITIES MAY ISSUE CAPITAL NOTES FOR CAPITAL EQUIPMENT.</b><br/>
<a id="pl.161.20"></a><var>161.20</var>    (a) Notwithstanding any contrary provision of other law or charter, a home rule charter
         <br/>
<a id="pl.161.21"></a><var>161.21</var>city may, by resolution and without public referendum, issue capital notes subject
         to the <br/>
<a id="pl.161.22"></a><var>161.22</var>city debt limit to purchase capital equipment.<br/>
<a id="pl.161.23"></a><var>161.23</var>    (b) For purposes of this section, "capital equipment" means:<br/>
<a id="pl.161.24"></a><var>161.24</var>    (1) public safety equipment, ambulance and other medical equipment, road construction
         <br/>
<a id="pl.161.25"></a><var>161.25</var>and maintenance equipment, and other capital equipment; and<br/>
<a id="pl.161.26"></a><var>161.26</var>    (2) computer hardware and software, whether bundled with machinery or equipment or
         <br/>
<a id="pl.161.27"></a><var>161.27</var>unbundled, together with application development services and training related to
         the use <br/>
<a id="pl.161.28"></a><var>161.28</var>of the computer hardware and software.<br/>
<a id="pl.161.29"></a><var>161.29</var>    (c) The equipment or software must have an expected useful life at least as long as
         the <br/>
<a id="pl.161.30"></a><var>161.30</var>term of the notes.<br/>
<a id="pl.161.31"></a><var>161.31</var>    (d) The notes shall be payable in not more than ten years and be issued on terms and
         in <br/>
<a id="pl.161.32"></a><var>161.32</var>the manner the city determines, provided that notes issued for projects that eliminate R-22, <br/>
<a id="pl.161.33"></a><var>161.33</var>as defined in section 240A.09, paragraph (b), clause (2), must be payable in not more
         than <br/>
<a id="pl.162.1"></a><var>162.1</var>20 years. The total principal amount of the capital notes issued in a fiscal year shall not
         <br/>
<a id="pl.162.2"></a><var>162.2</var>exceed 0.03 percent of the estimated market value of taxable property in the city
         for that <br/>
<a id="pl.162.3"></a><var>162.3</var>year.<br/>
<a id="pl.162.4"></a><var>162.4</var>    (e) A tax levy shall be made for the payment of the principal and interest on the
         notes, <br/>
<a id="pl.162.5"></a><var>162.5</var>in accordance with section 
         <statute_ref>475.61</statute_ref>, as in the case of bonds.<br/>
<a id="pl.162.6"></a><var>162.6</var>    (f) Notes issued under this section shall require an affirmative vote of two-thirds
         of the <br/>
<a id="pl.162.7"></a><var>162.7</var>governing body of the city.<br/>
<a id="pl.162.8"></a><var>162.8</var>    (g) Notwithstanding a contrary provision of other law or charter, a home rule charter
         <br/>
<a id="pl.162.9"></a><var>162.9</var>city may also issue capital notes subject to its debt limit in the manner and subject
         to the <br/>
<a id="pl.162.10"></a><var>162.10</var>limitations applicable to statutory cities pursuant to section 
         <statute_ref>412.301</statute_ref>.<br/>
<br/>
<a id="bill.7.4.0"></a><a id="pl.162.11"></a><var>162.11</var>    Sec. 4. Minnesota Statutes 2016, section 412.301, is amended to read:<br/>
<a id="pl.162.12"></a><var>162.12</var><b>412.301 FINANCING PURCHASE OF CERTAIN EQUIPMENT.</b><br/>
<a id="pl.162.13"></a><var>162.13</var>    (a) The council may issue certificates of indebtedness or capital notes subject to
         the city <br/>
<a id="pl.162.14"></a><var>162.14</var>debt limits to purchase capital equipment.<br/>
<a id="pl.162.15"></a><var>162.15</var>    (b) For purposes of this section, "capital equipment" means:<br/>
<a id="pl.162.16"></a><var>162.16</var>    (1) public safety equipment, ambulance and other medical equipment, road construction
         <br/>
<a id="pl.162.17"></a><var>162.17</var>and maintenance equipment, and other capital equipment; and<br/>
<a id="pl.162.18"></a><var>162.18</var>    (2) computer hardware and software, whether bundled with machinery or equipment or
         <br/>
<a id="pl.162.19"></a><var>162.19</var>unbundled, together with application development services and training related to
         the use <br/>
<a id="pl.162.20"></a><var>162.20</var>of the computer hardware or software.<br/>
<a id="pl.162.21"></a><var>162.21</var>    (c) The equipment or software must have an expected useful life at least as long as
         the <br/>
<a id="pl.162.22"></a><var>162.22</var>terms of the certificates or notes.<br/>
<a id="pl.162.23"></a><var>162.23</var>    (d) Such certificates or notes shall be payable in not more than ten years and shall
         be <br/>
<a id="pl.162.24"></a><var>162.24</var>issued on such terms and in such manner as the council may determine, provided, however, <br/>
<a id="pl.162.25"></a><var>162.25</var>that notes issued for projects that eliminate R-22, as defined in section 240A.09,
         paragraph <br/>
<a id="pl.162.26"></a><var>162.26</var>(b), clause (2), must be payable in not more than 20 years.<br/>
<a id="pl.162.27"></a><var>162.27</var>    (e) If the amount of the certificates or notes to be issued to finance any such purchase
         <br/>
<a id="pl.162.28"></a><var>162.28</var>exceeds 0.25 percent of the estimated market value of taxable property in the city,
         they shall <br/>
<a id="pl.162.29"></a><var>162.29</var>not be issued for at least ten days after publication in the official newspaper of
         a council <br/>
<a id="pl.162.30"></a><var>162.30</var>resolution determining to issue them; and if before the end of that time, a petition
         asking <br/>
<a id="pl.162.31"></a><var>162.31</var>for an election on the proposition signed by voters equal to ten percent of the number
         of <br/>
<a id="pl.162.32"></a><var>162.32</var>voters at the last regular municipal election is filed with the clerk, such certificates
         or notes <br/>
<a id="pl.163.1"></a><var>163.1</var>shall not be issued until the proposition of their issuance has been approved by a
         majority <br/>
<a id="pl.163.2"></a><var>163.2</var>of the votes cast on the question at a regular or special election.<br/>
<a id="pl.163.3"></a><var>163.3</var>    (f) A tax levy shall be made for the payment of the principal and interest on such
         <br/>
<a id="pl.163.4"></a><var>163.4</var>certificates or notes, in accordance with section 
         <statute_ref>475.61</statute_ref>, as in the case of bonds.<br/>
<br/>
<a id="bill.7.5.0"></a><a id="pl.163.5"></a><var>163.5</var>    Sec. 5. <b>[416.17] VOTER APPROVAL REQUIRED; LEASES OF PUBLIC </b><br/>
<a id="pl.163.6"></a><var>163.6</var><b>BUILDINGS.</b><br/>
<a id="pl.163.7"></a><var>163.7</var>    Subdivision 1. <b>Reverse referendum; certain leases.</b> (a) Before executing a qualified <br/>
<a id="pl.163.8"></a><var>163.8</var>lease, a municipality must publish notice of its intention to execute the lease and
         the date <br/>
<a id="pl.163.9"></a><var>163.9</var>and time of a hearing to obtain public comment on the matter. The notice must be published
         <br/>
<a id="pl.163.10"></a><var>163.10</var>in the official newspaper of the municipality or in a newspaper of general circulation
         in the <br/>
<a id="pl.163.11"></a><var>163.11</var>municipality and must include a statement of the amount of the obligations to be issued
         by <br/>
<a id="pl.163.12"></a><var>163.12</var>the authority and the maximum amount of annual rent to be paid by the municipality
         under <br/>
<a id="pl.163.13"></a><var>163.13</var>the qualified lease. The notice must be published at least 14, but not more than 28,
         days <br/>
<a id="pl.163.14"></a><var>163.14</var>before the date of the hearing.<br/>
<a id="pl.163.15"></a><var>163.15</var>(b) A municipality may enter a lease subject to paragraph (a) only upon obtaining
         the <br/>
<a id="pl.163.16"></a><var>163.16</var>approval of a majority of the voters voting on the question of issuing the obligations,
         if a <br/>
<a id="pl.163.17"></a><var>163.17</var>petition requesting a vote on the issuance is signed by voters equal to ten percent
         of the <br/>
<a id="pl.163.18"></a><var>163.18</var>votes cast in the municipality in the last state general election and is filed with
         the county <br/>
<a id="pl.163.19"></a><var>163.19</var>auditor within 30 days after the public hearing.<br/>
<a id="pl.163.20"></a><var>163.20</var>    Subd. 2. <b>Definitions.</b> (a) For purposes of this section, the following terms have the <br/>
<a id="pl.163.21"></a><var>163.21</var>meanings given them.<br/>
<a id="pl.163.22"></a><var>163.22</var>(b) "Authority" includes any of the following governmental units, the boundaries of
         <br/>
<a id="pl.163.23"></a><var>163.23</var>which include all or part of the geographic area of the municipality:<br/>
<a id="pl.163.24"></a><var>163.24</var>(1) a housing and redevelopment authority, as defined in section 469.002, subdivision
         <br/>
<a id="pl.163.25"></a><var>163.25</var>2;<br/>
<a id="pl.163.26"></a><var>163.26</var>(2) a port authority, as defined in section 469.048;<br/>
<a id="pl.163.27"></a><var>163.27</var>(3) an economic development authority, as established under section 469.091; or<br/>
 <a id="pl.163.28"></a><var>163.28</var>(4) an entity established or exercising powers under a special law with powers similar
         <br/>
<a id="pl.163.29"></a><var>163.29</var>to those of an entity described in clauses (1) to (3).<br/>
<a id="pl.163.30"></a><var>163.30</var>(c) "Municipality" means a statutory or home rule charter city, a county, or a town
         <br/>
<a id="pl.163.31"></a><var>163.31</var>described in section 368.01, but does not include a city of the first class, however
         organized, <br/>
<a id="pl.163.32"></a><var>163.32</var>as defined in section 410.01.<br/>
<a id="pl.164.1"></a><var>164.1</var>(d) "Qualified lease" means a lease for use of public land, all or part of a public
         building, <br/>
<a id="pl.164.2"></a><var>164.2</var>or other public facilities consisting of real property for a term of three or more
         years as a <br/>
<a id="pl.164.3"></a><var>164.3</var>lessee if the property to be leased to the municipality was acquired or improved with
         the <br/>
<a id="pl.164.4"></a><var>164.4</var>proceeds of obligations, as defined in section 475.51, subdivision 3, issued by an
         authority.<br/>
<br/>
<a id="bill.7.6.0"></a><a id="pl.164.5"></a><var>164.5</var>    Sec. 6. Minnesota Statutes 2016, section 469.101, subdivision 1, is amended to read:<br/>
<a id="pl.164.6"></a><var>164.6</var>    Subdivision 1. <b>Establishment.</b> An economic development authority may create and <br/>
<a id="pl.164.7"></a><var>164.7</var>define the boundaries of economic development districts at any place or places within
         the <br/>
<a id="pl.164.8"></a><var>164.8</var>city, except that the district boundaries must be contiguous, and may use the powers
         granted <br/>
<a id="pl.164.9"></a><var>164.9</var>in sections 
         <statute_ref>469.090</statute_ref> to 
         <statute_ref>469.108</statute_ref> to carry out its purposes. First the authority must hold a <br/>
<a id="pl.164.10"></a><var>164.10</var>public hearing on the matter. At least ten days before the hearing, the authority
         shall publish <br/>
<a id="pl.164.11"></a><var>164.11</var>notice of the hearing in a daily newspaper of general circulation in the city. Also, the authority <br/>
<a id="pl.164.12"></a><var>164.12</var>shall find that an economic development district is proper and desirable to establish
         and <br/>
<a id="pl.164.13"></a><var>164.13</var>develop within the city.<br/>
<br/>
<a id="bill.7.7.0"></a><a id="pl.164.14"></a><var>164.14</var>    Sec. 7. Minnesota Statutes 2016, section 473.39, is amended by adding a subdivision to <br/>
<a id="pl.164.15"></a><var>164.15</var>read:<br/>
<a id="pl.164.16"></a><var>164.16</var>    Subd. 1u. <b>Obligations.</b> In addition to other authority in this section, the council may <br/>
<a id="pl.164.17"></a><var>164.17</var>issue certificates of indebtedness, bonds, or other obligations under this section
         in an amount <br/>
<a id="pl.164.18"></a><var>164.18</var>not exceeding $126,000,000 for capital expenditures as prescribed in the council's
         transit <br/>
<a id="pl.164.19"></a><var>164.19</var>capital improvement program and for related costs, including the costs of issuance
         and sale <br/>
<a id="pl.164.20"></a><var>164.20</var>of the obligations. Of this authorization, after July 1, 2017, the council may issue
         certificates <br/>
<a id="pl.164.21"></a><var>164.21</var>of indebtedness, bonds, or other obligations in an amount not exceeding $82,100,000,
         and <br/>
<a id="pl.164.22"></a><var>164.22</var>after July 1, 2018, the council may issue certificates of indebtedness, bonds, or
         other <br/>
<a id="pl.164.23"></a><var>164.23</var>obligations in an additional amount not exceeding $43,900,000.<br/>
<a id="pl.164.24"></a><var>164.24</var><b>EFFECTIVE DATE.</b>This section is effective the day following final enactment and <br/>
<a id="pl.164.25"></a><var>164.25</var>applies in the counties of Anoka, Carver, Dakota, Hennepin, Ramsey, Scott, and Washington.<br/>
<br/>
<a id="bill.7.8.0"></a><a id="pl.164.26"></a><var>164.26</var>    Sec. 8. Minnesota Statutes 2016, section 473.39, is amended by adding a subdivision to <br/>
<a id="pl.164.27"></a><var>164.27</var>read:<br/>
<a id="pl.164.28"></a><var>164.28</var>    Subd. 6. <b>Limitation; light rail transit.</b> The council is prohibited from expending any <br/>
<a id="pl.164.29"></a><var>164.29</var>proceeds from certificates of indebtedness, bonds, or other obligations under this
         section <br/>
<a id="pl.164.30"></a><var>164.30</var>for project development, land acquisition, or construction to (1) establish a light
         rail transit <br/>
<a id="pl.164.31"></a><var>164.31</var>line; or (2) expand a light rail transit line, including by extending a line or adding
         additional <br/>
<a id="pl.164.32"></a><var>164.32</var>stops.<br/>
<a id="pl.165.1"></a><var>165.1</var><b>EFFECTIVE DATE.</b>This section applies to the expenditures made after the day <br/>
<a id="pl.165.2"></a><var>165.2</var>following final enactment, but does not apply to amounts expended under binding contracts
         <br/>
<a id="pl.165.3"></a><var>165.3</var>entered into before March 25, 2017. This section applies in the counties of Anoka,
         Carver, <br/>
<a id="pl.165.4"></a><var>165.4</var>Dakota, Hennepin, Ramsey, Scott, and Washington.<br/>
<br/>
<a id="bill.7.9.0"></a><a id="pl.165.5"></a><var>165.5</var>    Sec. 9. Minnesota Statutes 2016, section 475.60, subdivision 2, is amended to read:<br/>
<a id="pl.165.6"></a><var>165.6</var>    Subd. 2. <b>Requirements waived.</b> The requirements as to public sale shall not apply:<br/>
<a id="pl.165.7"></a><var>165.7</var>(1) to obligations issued under the provisions of a home rule charter or of a law
         <br/>
<a id="pl.165.8"></a><var>165.8</var>specifically authorizing a different method of sale, or authorizing them to be issued
         in such <br/>
<a id="pl.165.9"></a><var>165.9</var>manner or on such terms and conditions as the governing body may determine;<br/>
<a id="pl.165.10"></a><var>165.10</var>(2) to obligations sold by an issuer in an amount not exceeding the total sum of <br/>
<a id="pl.165.11"></a><var>165.11</var>$1,200,000 in any 12-month period;<br/>
<a id="pl.165.12"></a><var>165.12</var>(3) to obligations issued by a governing body other than a school board in anticipation
         <br/>
<a id="pl.165.13"></a><var>165.13</var>of the collection of taxes or other revenues appropriated for expenditure in a single
         year, if <br/>
<a id="pl.165.14"></a><var>165.14</var>sold in accordance with the most favorable of two or more proposals solicited privately;<br/>
<a id="pl.165.15"></a><var>165.15</var>(4) to obligations sold to any board, department, or agency of the United States of
         <br/>
<a id="pl.165.16"></a><var>165.16</var>America or of the state of Minnesota, in accordance with rules or regulations promulgated
         <br/>
<a id="pl.165.17"></a><var>165.17</var>by such board, department, or agency;<br/>
<a id="pl.165.18"></a><var>165.18</var>(5) to obligations issued to fund pension and retirement fund liabilities under section
         <br/>
<statute_ref><a id="pl.165.19"></a><var>165.19</var>475.52, subdivision 6
         </statute_ref>, obligations issued with tender options under section 
         <statute_ref>475.54, <br/>
<a id="pl.165.20"></a><var>165.20</var>subdivision 5a
         </statute_ref>, crossover refunding obligations referred to in section 
         <statute_ref>475.67, subdivision <br/>
<a id="pl.165.21"></a><var>165.21</var>13
         </statute_ref>, and any issue of obligations comprised in whole or in part of obligations bearing
         interest <br/>
<a id="pl.165.22"></a><var>165.22</var>at a rate or rates which vary periodically referred to in section 
         <statute_ref>475.56</statute_ref>;<br/>
<a id="pl.165.23"></a><var>165.23</var>(6) to obligations to be issued for a purpose, in a manner, and upon terms and conditions
         <br/>
<a id="pl.165.24"></a><var>165.24</var>authorized by law, if the governing body of the municipality, on the advice of bond
         counsel <br/>
<a id="pl.165.25"></a><var>165.25</var>or special tax counsel, determines that interest on the obligations cannot be represented
         to <br/>
<a id="pl.165.26"></a><var>165.26</var>be excluded from gross income for purposes of federal income taxation;<br/>
<a id="pl.165.27"></a><var>165.27</var>(7) to obligations issued in the form of an installment purchase contract, lease purchase
         <br/>
<a id="pl.165.28"></a><var>165.28</var>agreement, or other similar agreement;<br/>
<a id="pl.165.29"></a><var>165.29</var>(8) to obligations sold under a bond reinvestment program; and<br/>
<a id="pl.165.30"></a><var>165.30</var>(9) if the municipality has retained an independent financial advisor municipal adviser, <br/>
<a id="pl.165.31"></a><var>165.31</var>obligations which the governing body determines shall be sold by private negotiation.<br/>
<br/>
<a id="bill.8.0.0"></a>

<a id="bill.8.1.0"></a><a id="pl.166.3"></a><var>166.3</var>    Section 1. <b>[16A.1246] NO SPENDING FOR CERTAIN RAIL PROJECTS.</b><br/>
<a id="pl.166.4"></a><var>166.4</var>(a) Except as provided in paragraph (b), no appropriation or other state money, whether
         <br/>
<a id="pl.166.5"></a><var>166.5</var>in the general or another fund, must be expended or used for any costs related to
         studying <br/>
<a id="pl.166.6"></a><var>166.6</var>the feasibility of, planning for, designing, engineering, acquiring property or constructing
         <br/>
<a id="pl.166.7"></a><var>166.7</var>facilities for or related to, or development or operation of intercity or interregional
         passenger <br/>
<a id="pl.166.8"></a><var>166.8</var>rail facilities or operations between the city of Rochester or locations in its metropolitan
         <br/>
<a id="pl.166.9"></a><var>166.9</var>area and any location in the metropolitan area, as defined in section 473.121, subdivision
         <br/>
<a id="pl.166.10"></a><var>166.10</var>2.<br/>
<a id="pl.166.11"></a><var>166.11</var>(b) The restrictions under this section do not apply to funds obtained from contributions,
         <br/>
<a id="pl.166.12"></a><var>166.12</var>grants, or other voluntary payments made by nongovernmental entities from private
         sources.<br/>
<a id="pl.166.13"></a><var>166.13</var><b>EFFECTIVE DATE.</b>This section is effective the day following final enactment.<br/>
<br/>
<a id="bill.8.2.0"></a><a id="pl.166.14"></a><var>166.14</var>    Sec. 2. <b>[16B.2965] PROPERTY LEASED FOR RAIL PROJECTS.</b><br/>
<a id="pl.166.15"></a><var>166.15</var>(a) If a state official leases, loans, or otherwise makes available state lands, air
         rights, <br/>
<a id="pl.166.16"></a><var>166.16</var>or any other state property for use in connection with passenger rail facilities,
         as described <br/>
<a id="pl.166.17"></a><var>166.17</var>in section 16A.1246, the lease or other agreement must include or be secured by a
         security <br/>
<a id="pl.166.18"></a><var>166.18</var>bond or equivalent guarantee that allows the state to recover any costs it incurs
         in connection <br/>
<a id="pl.166.19"></a><var>166.19</var>with the rail project from a responsible third party or secure source of capital,
         if the passenger <br/>
<a id="pl.166.20"></a><var>166.20</var>rail facilities are not constructed, do not go into operation, or are abandoned, whether
         or <br/>
<a id="pl.166.21"></a><var>166.21</var>not the facilities began operations. The security bond or equivalent guarantee must
         remain <br/>
<a id="pl.166.22"></a><var>166.22</var>in place for the term of lease, loan, or other agreement that makes state property
         available <br/>
<a id="pl.166.23"></a><var>166.23</var>for use by the project. These costs include restoring state property to its original
         condition.<br/>
<a id="pl.166.24"></a><var>166.24</var>(b) For purposes of this section, "state official" includes the commissioner, the
         <br/>
<a id="pl.166.25"></a><var>166.25</var>commissioner of transportation, or any other state official with authority to enter
         a lease or <br/>
<a id="pl.166.26"></a><var>166.26</var>other agreement providing for use by a nonstate entity of state property.<br/>
<a id="pl.166.27"></a><var>166.27</var><b>EFFECTIVE DATE.</b>This section is effective the day following final enactment.<br/>
<br/>
<a id="bill.8.3.0"></a><a id="pl.166.28"></a><var>166.28</var>    Sec. 3. <b>[117.028] CONDEMNATION FOR CERTAIN RAIL FACILITIES </b><br/>
<a id="pl.166.29"></a><var>166.29</var><b>PROHIBITED.</b><br/>
<a id="pl.166.30"></a><var>166.30</var>Notwithstanding section 222.27 or any other law to the contrary, no condemning authority
         <br/>
<a id="pl.166.31"></a><var>166.31</var>may take property for the development or construction of or for facilities related
         to intercity <br/>
<a id="pl.167.1"></a><var>167.1</var>or interregional passenger rail facilities or operations between the city of Rochester
         or <br/>
<a id="pl.167.2"></a><var>167.2</var>locations in its metropolitan area and any location in the metropolitan area, as defined
         in <br/>
<a id="pl.167.3"></a><var>167.3</var>section 473.121, subdivision 2.<br/>
<a id="pl.167.4"></a><var>167.4</var><b>EFFECTIVE DATE.</b>This section is effective the day following final enactment.<br/>
<br/>
<a id="bill.8.4.0"></a><a id="pl.167.5"></a><var>167.5</var>    Sec. 4. Minnesota Statutes 2016, section 216B.36, is amended to read:<br/>
<a id="pl.167.6"></a><var>167.6</var><b>216B.36 MUNICIPAL REGULATORY AND TAXING POWERS.</b><br/>
<a id="pl.167.7"></a><var>167.7</var>    Subdivision 1. <b>Municipal authority to regulate public utilities.</b> Any public utility <br/>
<a id="pl.167.8"></a><var>167.8</var>furnishing the utility services enumerated in section 
         <statute_ref>216B.02</statute_ref> or occupying streets, highways, <br/>
<a id="pl.167.9"></a><var>167.9</var>or other public property within a municipality may be required to obtain a license,
         permit, <br/>
<a id="pl.167.10"></a><var>167.10</var>right, or franchise in accordance with the terms, conditions, and limitations of regulatory
         <br/>
<a id="pl.167.11"></a><var>167.11</var>acts of the municipality, including the placing of distribution lines and facilities
         underground. <br/>
<a id="pl.167.12"></a><var>167.12</var>Under the license, permit, right, or franchise, the utility may be obligated by any
         municipality <br/>
<a id="pl.167.13"></a><var>167.13</var>to pay to the municipality fees to raise revenue or defray increased municipal costs
         accruing <br/>
<a id="pl.167.14"></a><var>167.14</var>as a result of utility operations, or both. A fee that raises revenue under a license, permit, <br/>
<a id="pl.167.15"></a><var>167.15</var>right, or franchise agreement entered into or renewed on or after August 1, 2017,
         is subject <br/>
<a id="pl.167.16"></a><var>167.16</var>to the requirements of subdivision 2. The fee may include but is not limited to a sum of <br/>
<a id="pl.167.17"></a><var>167.17</var>money based upon gross operating revenues or gross earnings from its operations in
         the <br/>
<a id="pl.167.18"></a><var>167.18</var>municipality so long as the public utility shall continue to operate in the municipality,
         unless <br/>
<a id="pl.167.19"></a><var>167.19</var>upon request of the public utility it is expressly released from the obligation at
         any time by <br/>
<a id="pl.167.20"></a><var>167.20</var>such municipality. Notwithstanding the definition of "public utility" in section 
         <statute_ref>216B.02, <br/>
<a id="pl.167.21"></a><var>167.21</var>subdivision 4
         </statute_ref>, a municipality may require payment of a fee under this section by a cooperative
         <br/>
<a id="pl.167.22"></a><var>167.22</var>electric association organized under chapter 308A that furnishes utility services
         within the <br/>
<a id="pl.167.23"></a><var>167.23</var>municipality. All existing licenses, permits, franchises, and other rights acquired
         by any <br/>
<a id="pl.167.24"></a><var>167.24</var>public utility or municipality prior to April 11, 1974, including the payment of existing
         <br/>
<a id="pl.167.25"></a><var>167.25</var>franchise fees, shall not be impaired or affected in any respect by the passage of
         this chapter, <br/>
<a id="pl.167.26"></a><var>167.26</var>except with respect to matters of rate and service regulation, service area assignments,
         <br/>
<a id="pl.167.27"></a><var>167.27</var>securities, and indebtedness that are vested in the jurisdiction of the commission
         by this <br/>
<a id="pl.167.28"></a><var>167.28</var>chapter. However, in the event that a court of competent jurisdiction determines,
         or the <br/>
<a id="pl.167.29"></a><var>167.29</var>parties by mutual agreement determine, that an existing license, permit, franchise,
         or other <br/>
<a id="pl.167.30"></a><var>167.30</var>right has been abrogated or impaired by this chapter, or its execution, the municipality
         <br/>
<a id="pl.167.31"></a><var>167.31</var>affected shall impose and the public utility shall collect an excise tax on the utility
         charges <br/>
<a id="pl.167.32"></a><var>167.32</var>which from year to year yields an amount which is reasonably equivalent to that amount
         of <br/>
<a id="pl.167.33"></a><var>167.33</var>revenue which then would be due as a fee, charges or other thing or service of value
         to the <br/>
<a id="pl.167.34"></a><var>167.34</var>municipality under the franchise, license, or permit. The authorization shall be over
         and <br/>
<a id="pl.168.1"></a><var>168.1</var>above taxing limitations including, but not limited to, those of section 
         <statute_ref>477A.016</statute_ref>. Franchises <br/>
<a id="pl.168.2"></a><var>168.2</var>granted pursuant to this section shall be exempt from the provisions of chapter 80C.
         For <br/>
<a id="pl.168.3"></a><var>168.3</var>purposes of this section, a public utility shall include a cooperative electric association.<br/>
<a id="pl.168.4"></a><var>168.4</var>    Subd. 2. <b>Five-year renewal; reverse referendum.</b> (a) A municipality may impose a <br/>
<a id="pl.168.5"></a><var>168.5</var>fee under subdivision 1 to raise revenue beyond what is needed to defray increased
         municipal <br/>
<a id="pl.168.6"></a><var>168.6</var>costs due to utility operations for up to a five-year period, following the procedures
         in this <br/>
<a id="pl.168.7"></a><var>168.7</var>subdivision.<br/>
 <a id="pl.168.8"></a><var>168.8</var>(b) The municipality must include in its ordinance or license, permit, or franchise
         <br/>
<a id="pl.168.9"></a><var>168.9</var>agreement with the public utility what constitutes a cost to the city.<br/>
<a id="pl.168.10"></a><var>168.10</var>(c) The municipality must identify in its ordinance or license, permit, or franchise
         <br/>
<a id="pl.168.11"></a><var>168.11</var>agreement the uses of the portion of the fee that is for purposes other than to defray
         city <br/>
<a id="pl.168.12"></a><var>168.12</var>costs. The municipality must publish a notice that explains:<br/>
<a id="pl.168.13"></a><var>168.13</var>(1) the fee and its intended uses;<br/>
<a id="pl.168.14"></a><var>168.14</var>(2) that the public utility is likely to pass the fee on to customers and how much
         that <br/>
<a id="pl.168.15"></a><var>168.15</var>may increase customers' utility bills;<br/>
<a id="pl.168.16"></a><var>168.16</var>(3) that alternatives to the revenue-raising portion of the fee are to raise the revenue
         <br/>
<a id="pl.168.17"></a><var>168.17</var>from another source available to the municipality or forego planned uses of the revenue;
         <br/>
<a id="pl.168.18"></a><var>168.18</var>and<br/>
<a id="pl.168.19"></a><var>168.19</var>(4) what revenue raised from another source will cost those paying it.<br/>
<a id="pl.168.20"></a><var>168.20</var>The notice must be published at least once each week for two consecutive weeks in
         the <br/>
<a id="pl.168.21"></a><var>168.21</var>official publication of the municipality and must remain posted on the municipality's
         Web <br/>
<a id="pl.168.22"></a><var>168.22</var>site throughout the notice period. The notice must also be sent to all affected ratepayers
         by <br/>
<a id="pl.168.23"></a><var>168.23</var>either first class mail by the municipality or by including the notice in the affected
         ratepayers' <br/>
<a id="pl.168.24"></a><var>168.24</var>billings.<br/>
<a id="pl.168.25"></a><var>168.25</var>(d) Following publication and before imposing the fee, the municipality must provide
         <br/>
<a id="pl.168.26"></a><var>168.26</var>an opportunity at its next regular meeting for public comment relating to the issue.
         No <br/>
<a id="pl.168.27"></a><var>168.27</var>sooner than 90 days after the public comment opportunity, the municipality may proceed
         <br/>
<a id="pl.168.28"></a><var>168.28</var>with imposing the fee, unless a petition is filed as provided in paragraph (e).<br/>
<a id="pl.168.29"></a><var>168.29</var>(e) Within 90 days after the meeting held by the municipality at which public comment
         <br/>
<a id="pl.168.30"></a><var>168.30</var>was accepted, a petition requesting a referendum may be filed with the chief clerical
         officer <br/>
<a id="pl.168.31"></a><var>168.31</var>of the municipality. The petition must be signed by at least five percent of the registered
         <br/>
<a id="pl.168.32"></a><var>168.32</var>voters in the municipality. The petition must meet the requirements of the secretary
         of state, <br/>
<a id="pl.168.33"></a><var>168.33</var>as provided in section 204B.071, and any rules adopted to implement that section.
         If the <br/>
<a id="pl.169.1"></a><var>169.1</var>petition is sufficient, the question of whether the municipality may impose a fee
         that raises <br/>
<a id="pl.169.2"></a><var>169.2</var>revenue as provided in subdivision 1 must be placed on the ballot at the next general
         election. <br/>
<a id="pl.169.3"></a><var>169.3</var>If a majority of the voters voting on the question votes in favor of using the fee
         to raise <br/>
<a id="pl.169.4"></a><var>169.4</var>revenue, the municipality may proceed with imposing the fee.<br/>
<a id="pl.169.5"></a><var>169.5</var>(f) If a license, permit, right, or franchise agreement is entered into or renewed
         before <br/>
<a id="pl.169.6"></a><var>169.6</var>August 1, 2017, and by its terms and the ordinance authorizing it, will be in effect
         after <br/>
<a id="pl.169.7"></a><var>169.7</var>August 1, 2022, the municipality must follow the procedures in this subdivision to
         provide <br/>
<a id="pl.169.8"></a><var>169.8</var>notice, a public hearing, and opportunity for a petition for a referendum by August
         1, 2022.<br/>
<a id="pl.169.9"></a><var>169.9</var>(g) Except as provided in paragraph (f), this subdivision applies to a license, permit,
         <br/>
<a id="pl.169.10"></a><var>169.10</var>right, or franchise agreement entered into or renewed on or after August 1, 2017.<br/>
<a id="pl.169.11"></a><var>169.11</var><b>EFFECTIVE DATE.</b>This section is effective the day following final enactment.<br/>
<br/>
<a id="bill.8.5.0"></a><a id="pl.169.12"></a><var>169.12</var>    Sec. 5. <b>[222.271] PASSENGER RAIL PROJECTS; ENVIRONMENTAL </b><br/>
<a id="pl.169.13"></a><var>169.13</var><b>INSURANCE REQUIRED.</b><br/>
<a id="pl.169.14"></a><var>169.14</var>    Subdivision 1. <b>Scope.</b> (a) This section applies to any person that seeks a federal or state <br/>
<a id="pl.169.15"></a><var>169.15</var>permit or other formal legal authorization to construct or operate a passenger rail
         project <br/>
<a id="pl.169.16"></a><var>169.16</var>with an estimated capital cost exceeding $1,000,000,000.<br/>
<a id="pl.169.17"></a><var>169.17</var>(b) This section does not apply to a person whose only action within the scope of
         <br/>
<a id="pl.169.18"></a><var>169.18</var>paragraph (a) is an application for a building permit.<br/>
<a id="pl.169.19"></a><var>169.19</var>    Subd. 2. <b>Definitions.</b> (a) For purposes of this section, unless the context clearly indicates <br/>
<a id="pl.169.20"></a><var>169.20</var>otherwise, the following definitions apply.<br/>
<a id="pl.169.21"></a><var>169.21</var>(b) "Commissioner" means the commissioner of the Pollution Control Agency.<br/>
<a id="pl.169.22"></a><var>169.22</var>(c) "Insurance" means a commercial insurance policy, a security bond, or an equivalent
         <br/>
<a id="pl.169.23"></a><var>169.23</var>guarantee that provides assurance of the project's ability to pay claims for any liability
         under <br/>
<a id="pl.169.24"></a><var>169.24</var>chapter 115B or similar provisions of common law or federal law resulting from construction
         <br/>
<a id="pl.169.25"></a><var>169.25</var>or operation of the passenger rail project.<br/>
<a id="pl.169.26"></a><var>169.26</var>(d) "Passenger rail project" or "project" means a railroad or a line or lines of a
         railway <br/>
<a id="pl.169.27"></a><var>169.27</var>located within or partly within Minnesota intended to provide passenger service, regardless
         <br/>
<a id="pl.169.28"></a><var>169.28</var>of whether freight service is also provided, by a common carrier other than a federal
         or state <br/>
<a id="pl.169.29"></a><var>169.29</var>government unit, a political subdivision of the state, or the National Railroad Passenger
         <br/>
<a id="pl.169.30"></a><var>169.30</var>Corporation created under the Rail Passenger Service Act of 1970, Public Law 91-518.<br/>
<a id="pl.169.31"></a><var>169.31</var>(e) "Person" includes a corporation, limited liability company, partnership, other
         entity, <br/>
<a id="pl.169.32"></a><var>169.32</var>or an individual.<br/>
<a id="pl.170.1"></a><var>170.1</var>    Subd. 3. <b>Environmental insurance required.</b> (a) Any person subject to this section <br/>
<a id="pl.170.2"></a><var>170.2</var>must obtain and maintain insurance that is adequate to cover potential claims and
         meets the <br/>
<a id="pl.170.3"></a><var>170.3</var>other requirements of this section, as approved by the commissioner under paragraph
         (b). <br/>
<a id="pl.170.4"></a><var>170.4</var>The insurance must not contain dollar limits on liability, or if it does contain a
         dollar limit <br/>
<a id="pl.170.5"></a><var>170.5</var>the limit must be not less than a reasonable estimate of the potential exposure of
         the project <br/>
<a id="pl.170.6"></a><var>170.6</var>for environmental remediation or impairment damages. Any dollar limit must be adjusted
         <br/>
<a id="pl.170.7"></a><var>170.7</var>if the scope, size, or cost of the project increases materially. The insurance must
         cover any <br/>
<a id="pl.170.8"></a><var>170.8</var>liability incurred during and after the construction and operation of the project
         and must <br/>
<a id="pl.170.9"></a><var>170.9</var>not contain exclusions, limitations, or other restrictions that are not standard in
         comprehensive <br/>
<a id="pl.170.10"></a><var>170.10</var>environmental remediation insurance or in environmental impairment insurance, as <br/>
<a id="pl.170.11"></a><var>170.11</var>applicable.<br/>
<a id="pl.170.12"></a><var>170.12</var>(b) In order to satisfy the requirements of this section, the commissioner must determine
         <br/>
<a id="pl.170.13"></a><var>170.13</var>that the insurance is adequate and that it meets the other requirements of this section.
         The <br/>
<a id="pl.170.14"></a><var>170.14</var>commissioner may require that the project provide any supporting documentation to
         <br/>
<a id="pl.170.15"></a><var>170.15</var>determine that insurance is adequate and meets the other requirements of this section
         and <br/>
<a id="pl.170.16"></a><var>170.16</var>that the project has the financial ability to maintain insurance during the project's
         operations.<br/>
<a id="pl.170.17"></a><var>170.17</var><b>EFFECTIVE DATE.</b>This section is effective for passenger rail projects for which <br/>
<a id="pl.170.18"></a><var>170.18</var>application for a permit or other formal legal authorization to construct is made
         after the <br/>
<a id="pl.170.19"></a><var>170.19</var>day following final enactment.<br/>
<br/>
<a id="bill.8.6.0"></a><a id="pl.170.20"></a><var>170.20</var>    Sec. 6. Minnesota Statutes 2016, section 270A.03, subdivision 7, is amended to read:<br/>
<a id="pl.170.21"></a><var>170.21</var>    Subd. 7. <b>Refund.</b> "Refund" means an individual income tax refund or political <br/>
<a id="pl.170.22"></a><var>170.22</var>contribution refund, pursuant to chapter 290, or a property tax credit or refund, pursuant to <br/>
<a id="pl.170.23"></a><var>170.23</var>chapter 290A, or a sustainable forest payment to a claimant under chapter 290C.<br/>
<a id="pl.170.24"></a><var>170.24</var>For purposes of this chapter, lottery prizes, as set forth in section 
         <statute_ref>349A.08, subdivision <br/>
<a id="pl.170.25"></a><var>170.25</var>8
         </statute_ref>, and amounts granted to persons by the legislature on the recommendation of the joint
         <br/>
<a id="pl.170.26"></a><var>170.26</var>senate-house of representatives Subcommittee on Claims shall be treated as refunds.<br/>
<a id="pl.170.27"></a><var>170.27</var>In the case of a joint property tax refund payable to spouses under chapter 290A,
         the <br/>
<a id="pl.170.28"></a><var>170.28</var>refund shall be considered as belonging to each spouse in the proportion of the total
         refund <br/>
<a id="pl.170.29"></a><var>170.29</var>that equals each spouse's proportion of the total income determined under section
         
         <statute_ref>290A.03, <br/>
<a id="pl.170.30"></a><var>170.30</var>subdivision 3
         </statute_ref>. In the case of a joint income tax refund under chapter 289A, the refund shall <br/>
<a id="pl.170.31"></a><var>170.31</var>be considered as belonging to each spouse in the proportion of the total refund that
         equals <br/>
<a id="pl.170.32"></a><var>170.32</var>each spouse's proportion of the total taxable income determined under section 
         <statute_ref>290.01, <br/>
<a id="pl.170.33"></a><var>170.33</var>subdivision 29
         </statute_ref>. The commissioner shall remit the entire refund to the claimant agency, <br/>
<a id="pl.170.34"></a><var>170.34</var>which shall, upon the request of the spouse who does not owe the debt, determine the
         amount <br/>
<a id="pl.171.1"></a><var>171.1</var>of the refund belonging to that spouse and refund the amount to that spouse. For court
         fines, <br/>
<a id="pl.171.2"></a><var>171.2</var>fees, and surcharges and court-ordered restitution under section 
         <statute_ref>611A.04, subdivision 2</statute_ref>, <br/>
<a id="pl.171.3"></a><var>171.3</var>the notice provided by the commissioner of revenue under section 
         <statute_ref>270A.07, subdivision 2</statute_ref>, <br/>
<a id="pl.171.4"></a><var>171.4</var>paragraph (b), serves as the appropriate legal notice to the spouse who does not owe
         the <br/>
<a id="pl.171.5"></a><var>171.5</var>debt.<br/>
<a id="pl.171.6"></a><var>171.6</var><b>EFFECTIVE DATE.</b>This section is effective for political contribution refund claims <br/>
<a id="pl.171.7"></a><var>171.7</var>based on contributions made on or after July 1, 2017.<br/>
<br/>
<a id="bill.8.7.0"></a><a id="pl.171.8"></a><var>171.8</var>    Sec. 7. Minnesota Statutes 2016, section 287.08, is amended to read:<br/>
<a id="pl.171.9"></a><var>171.9</var><b>287.08 TAX, HOW PAYABLE; RECEIPTS.</b><br/>
<a id="pl.171.10"></a><var>171.10</var>    (a) The tax imposed by sections 
         <statute_ref>287.01</statute_ref> to 
         <statute_ref>287.12</statute_ref> must be paid to the treasurer of any <br/>
<a id="pl.171.11"></a><var>171.11</var>county in this state in which the real property or some part is located at or before
         the time <br/>
<a id="pl.171.12"></a><var>171.12</var>of filing the mortgage for record. The treasurer shall endorse receipt on the mortgage
         and <br/>
<a id="pl.171.13"></a><var>171.13</var>the receipt is conclusive proof that the tax has been paid in the amount stated and
         authorizes <br/>
<a id="pl.171.14"></a><var>171.14</var>any county recorder or registrar of titles to record the mortgage. Its form, in substance,
         shall <br/>
<a id="pl.171.15"></a><var>171.15</var>be "registration tax hereon of ..................... dollars paid." If the mortgage
         is exempt from <br/>
<a id="pl.171.16"></a><var>171.16</var>taxation the endorsement shall, in substance, be "exempt from registration tax." In
         either <br/>
<a id="pl.171.17"></a><var>171.17</var>case the receipt must be signed by the treasurer. In case the treasurer is unable
         to determine <br/>
<a id="pl.171.18"></a><var>171.18</var>whether a claim of exemption should be allowed, the tax must be paid as in the case
         of a <br/>
<a id="pl.171.19"></a><var>171.19</var>taxable mortgage. For documents submitted electronically, the endorsements and tax
         amount <br/>
<a id="pl.171.20"></a><var>171.20</var>shall be affixed electronically and no signature by the treasurer will be required.
         The actual <br/>
<a id="pl.171.21"></a><var>171.21</var>payment method must be arranged in advance between the submitter and the receiving
         <br/>
<a id="pl.171.22"></a><var>171.22</var>county.<br/>
<a id="pl.171.23"></a><var>171.23</var>    (b) The county treasurer may refund in whole or in part any mortgage registry tax
         <br/>
<a id="pl.171.24"></a><var>171.24</var>overpayment if a written application by the taxpayer is submitted to the county treasurer
         <br/>
<a id="pl.171.25"></a><var>171.25</var>within 3-1/2 years from the date of the overpayment. If the county has not issued
         a denial <br/>
<a id="pl.171.26"></a><var>171.26</var>of the application, the taxpayer may bring an action in Tax Court in the county in
         which <br/>
<a id="pl.171.27"></a><var>171.27</var>the tax was paid at any time after the expiration of six months from the time that
         the <br/>
<a id="pl.171.28"></a><var>171.28</var>application was submitted. A denial of refund may be appealed within 60 days from
         the <br/>
<a id="pl.171.29"></a><var>171.29</var>date of the denial by bringing an action in Tax Court in the county in which the tax
         was <br/>
<a id="pl.171.30"></a><var>171.30</var>paid. The action is commenced by the serving of a petition for relief on the county
         treasurer, <br/>
<a id="pl.171.31"></a><var>171.31</var>and by filing a copy with the court. The county attorney shall defend the action.
         The county <br/>
<a id="pl.171.32"></a><var>171.32</var>treasurer shall notify the treasurer of each county that has or would receive a portion
         of the <br/>
<a id="pl.171.33"></a><var>171.33</var>tax as paid.<br/>
<a id="pl.172.1"></a><var>172.1</var>    (c) If the county treasurer determines a refund should be paid, or if a refund is
         ordered <br/>
<a id="pl.172.2"></a><var>172.2</var>by the court, the county treasurer of each county that actually received a portion
         of the tax <br/>
<a id="pl.172.3"></a><var>172.3</var>shall immediately pay a proportionate share of three percent of the refund using any
         available <br/>
<a id="pl.172.4"></a><var>172.4</var>county funds. The county treasurer of each county that received, or would have received,
         <br/>
<a id="pl.172.5"></a><var>172.5</var>a portion of the tax shall also pay their county's proportionate share of the remaining
         97 <br/>
<a id="pl.172.6"></a><var>172.6</var>percent of the court-ordered refund on or before the 20th day of the following month
         using <br/>
<a id="pl.172.7"></a><var>172.7</var>solely the mortgage registry tax funds that would be paid to the commissioner of revenue
         <br/>
<a id="pl.172.8"></a><var>172.8</var>on that date under section 
         <statute_ref>287.12</statute_ref>. If the funds on hand under this procedure are insufficient <br/>
<a id="pl.172.9"></a><var>172.9</var>to fully fund 97 percent of the court-ordered refund, the county treasurer of the
         county in <br/>
<a id="pl.172.10"></a><var>172.10</var>which the action was brought shall file a claim with the commissioner of revenue under
         <br/>
<a id="pl.172.11"></a><var>172.11</var>section 
         <statute_ref>16A.48</statute_ref> for the remaining portion of 97 percent of the refund, and shall pay over the <br/>
<a id="pl.172.12"></a><var>172.12</var>remaining portion upon receipt of a warrant from the state issued pursuant to the
         claim.<br/>
<a id="pl.172.13"></a><var>172.13</var>    (d) When any mortgage covers real property located in more than one county in this
         <br/>
<a id="pl.172.14"></a><var>172.14</var>state the total tax must be paid to the treasurer of the county where the mortgage
         is first <br/>
<a id="pl.172.15"></a><var>172.15</var>presented for recording, and the payment must be receipted as provided in paragraph
         (a). <br/>
<a id="pl.172.16"></a><var>172.16</var>If the principal debt or obligation secured by such a multiple county mortgage exceeds
         <br/>
<a id="pl.172.17"></a><var>172.17</var>$10,000,000, the tax collected shall be forwarded by the county treasurer receiving it to the <br/>
<a id="pl.172.18"></a><var>172.18</var>commissioner of revenue and the nonstate portion of the tax must be divided and paid over <br/>
<a id="pl.172.19"></a><var>172.19</var>by the county treasurer receiving it commissioner of revenue, on or before the 20th day of <br/>
<a id="pl.172.20"></a><var>172.20</var>each month after receipt, to the county or counties entitled in the ratio that the
         estimated <br/>
<a id="pl.172.21"></a><var>172.21</var>market value of the real property covered by the mortgage in each county bears to
         the <br/>
<a id="pl.172.22"></a><var>172.22</var>estimated market value of all the real property in this state described in the mortgage.
         In <br/>
<a id="pl.172.23"></a><var>172.23</var>making the division and payment the county treasurer commissioner of revenue shall send <br/>
<a id="pl.172.24"></a><var>172.24</var>a statement giving the description of the real property described in the mortgage
         and the <br/>
<a id="pl.172.25"></a><var>172.25</var>estimated market value of the part located in each county. For this purpose, the treasurer of <br/>
<a id="pl.172.26"></a><var>172.26</var>any county commissioner of revenue may require the treasurer of any other county to certify <br/>
<a id="pl.172.27"></a><var>172.27</var>to the former the estimated market value of any tract of real property in any mortgage in <br/>
<a id="pl.172.28"></a><var>172.28</var>the county.<br/>
<a id="pl.172.29"></a><var>172.29</var>    (e) The mortgagor must pay the tax imposed by sections 
         <statute_ref>287.01</statute_ref> to 
         <statute_ref>287.12</statute_ref>. The mortgagee <br/>
<a id="pl.172.30"></a><var>172.30</var>may undertake to collect and remit the tax on behalf of the mortgagor. If the mortgagee
         <br/>
<a id="pl.172.31"></a><var>172.31</var>collects money from the mortgagor to remit the tax on behalf of the mortgagor, the
         mortgagee <br/>
<a id="pl.172.32"></a><var>172.32</var>has a fiduciary duty to remit the tax on behalf of the mortgagor as to the amount
         of the tax <br/>
<a id="pl.172.33"></a><var>172.33</var>collected for that purpose and the mortgagor is relieved of any further obligation
         to pay the <br/>
<a id="pl.172.34"></a><var>172.34</var>tax as to the amount collected by the mortgagee for this purpose.<br/>
<a id="pl.172.35"></a><var>172.35</var><b>EFFECTIVE DATE.</b>This section is effective for tax collected after June 30, 2017.<br/>
<br/>
<a id="bill.8.8.0"></a><a id="pl.173.1"></a><var>173.1</var>    Sec. 8. Minnesota Statutes 2016, section 289A.50, subdivision 1, is amended to read:<br/>
<a id="pl.173.2"></a><var>173.2</var>    Subdivision 1. <b>General right to refund.</b> (a) Subject to the requirements of this section <br/>
<a id="pl.173.3"></a><var>173.3</var>and section 
         <statute_ref>289A.40</statute_ref>, a taxpayer who has paid a tax in excess of the taxes lawfully due and <br/>
<a id="pl.173.4"></a><var>173.4</var>who files a written claim for refund will be refunded or credited the overpayment
         of the tax <br/>
<a id="pl.173.5"></a><var>173.5</var>determined by the commissioner to be erroneously paid.<br/>
<a id="pl.173.6"></a><var>173.6</var>(b) The claim must specify the name of the taxpayer, the date when and the period
         for <br/>
<a id="pl.173.7"></a><var>173.7</var>which the tax was paid, the kind of tax paid, the amount of the tax that the taxpayer
         claims <br/>
<a id="pl.173.8"></a><var>173.8</var>was erroneously paid, the grounds on which a refund is claimed, and other information
         <br/>
<a id="pl.173.9"></a><var>173.9</var>relative to the payment and in the form required by the commissioner. An income tax,
         estate <br/>
<a id="pl.173.10"></a><var>173.10</var>tax, or corporate franchise tax return, or amended return claiming an overpayment
         constitutes <br/>
<a id="pl.173.11"></a><var>173.11</var>a claim for refund.<br/>
<a id="pl.173.12"></a><var>173.12</var>(c) When, in the course of an examination, and within the time for requesting a refund,
         <br/>
<a id="pl.173.13"></a><var>173.13</var>the commissioner determines that there has been an overpayment of tax, the commissioner
         <br/>
<a id="pl.173.14"></a><var>173.14</var>shall refund or credit the overpayment to the taxpayer and no demand is necessary.
         If the <br/>
<a id="pl.173.15"></a><var>173.15</var>overpayment exceeds $1, the amount of the overpayment must be refunded to the taxpayer.
         <br/>
<a id="pl.173.16"></a><var>173.16</var>If the amount of the overpayment is less than $1, the commissioner is not required
         to refund. <br/>
<a id="pl.173.17"></a><var>173.17</var>In these situations, the commissioner does not have to make written findings or serve
         notice <br/>
<a id="pl.173.18"></a><var>173.18</var>by mail to the taxpayer.<br/>
<a id="pl.173.19"></a><var>173.19</var>(d) If the amount allowable as a credit for withholding, estimated taxes, or dependent
         <br/>
<a id="pl.173.20"></a><var>173.20</var>care exceeds the tax against which the credit is allowable, the amount of the excess
         is <br/>
<a id="pl.173.21"></a><var>173.21</var>considered an overpayment. The refund allowed by section 
<statute_ref>290.06, subdivision 23</statute_ref>, is also <br/>
<a id="pl.173.22"></a><var>173.22</var>considered an overpayment. The requirements of section 
         <statute_ref>270C.33</statute_ref> do not apply to the <br/>
<a id="pl.173.23"></a><var>173.23</var>refunding of such an overpayment shown on the original return filed by a taxpayer.<br/>
<a id="pl.173.24"></a><var>173.24</var>(e) If the entertainment tax withheld at the source exceeds by $1 or more the taxes,
         <br/>
<a id="pl.173.25"></a><var>173.25</var>penalties, and interest reported in the return of the entertainment entity or imposed
         by section <br/>
<statute_ref><a id="pl.173.26"></a><var>173.26</var>290.9201
         </statute_ref>, the excess must be refunded to the entertainment entity. If the excess is less than
         <br/>
<a id="pl.173.27"></a><var>173.27</var>$1, the commissioner need not refund that amount.<br/>
<a id="pl.173.28"></a><var>173.28</var>(f) If the surety deposit required for a construction contract exceeds the liability
         of the <br/>
<a id="pl.173.29"></a><var>173.29</var>out-of-state contractor, the commissioner shall refund the difference to the contractor.<br/>
<a id="pl.173.30"></a><var>173.30</var>(g) An action of the commissioner in refunding the amount of the overpayment does
         not <br/>
<a id="pl.173.31"></a><var>173.31</var>constitute a determination of the correctness of the return of the taxpayer.<br/>
<a id="pl.173.32"></a><var>173.32</var>(h) There is appropriated from the general fund to the commissioner of revenue the
         <br/>
<a id="pl.173.33"></a><var>173.33</var>amount necessary to pay refunds allowed under this section.<br/>
<a id="pl.174.1"></a><var>174.1</var><b>EFFECTIVE DATE.</b>This section is effective for political contribution refund claims <br/>
<a id="pl.174.2"></a><var>174.2</var>based on contributions made on or after July 1, 2017.<br/>
<br/>
<a id="bill.8.9.0"></a><a id="pl.174.3"></a><var>174.3</var>    Sec. 9. Minnesota Statutes 2016, section 290.01, subdivision 6, is amended to read:<br/>
<a id="pl.174.4"></a><var>174.4</var>    Subd. 6. <b>Taxpayer.</b> The term "taxpayer" means any person or corporation subject to a <br/>
<a id="pl.174.5"></a><var>174.5</var>tax imposed by this chapter. For purposes of section 
<statute_ref>290.06, subdivision 23</statute_ref>, the term <br/>
<a id="pl.174.6"></a><var>174.6</var>"taxpayer" means an individual eligible to vote in Minnesota under section 
<statute_ref>201.014</statute_ref>.<br/>
<a id="pl.174.7"></a><var>174.7</var><b>EFFECTIVE DATE.</b>This section is effective for political contribution refund claims <br/>
<a id="pl.174.8"></a><var>174.8</var>based on contributions made on or after July 1, 2017.<br/>
<br/>
<a id="bill.8.10.0"></a><a id="pl.174.9"></a><var>174.9</var>    Sec. 10. Minnesota Statutes 2016, section 298.225, subdivision 1, is amended to read:<br/>
<a id="pl.174.10"></a><var>174.10</var>    Subdivision 1. <b>Guaranteed distribution.</b> (a) Except as provided under paragraph (c), <br/>
<a id="pl.174.11"></a><var>174.11</var>the distribution of the taconite production tax as provided in section 
         <statute_ref>298.28</statute_ref>, subdivisions <br/>
<a id="pl.174.12"></a><var>174.12</var>3 to 5, 6, paragraph (b), 7, and 8, shall equal the lesser of the following amounts:<br/>
<a id="pl.174.13"></a><var>174.13</var>(1) the amount distributed pursuant to this section and section 
         <statute_ref>298.28</statute_ref>, with respect to <br/>
<a id="pl.174.14"></a><var>174.14</var>1983 production if the production for the year prior to the distribution year is no
         less than <br/>
<a id="pl.174.15"></a><var>174.15</var>42,000,000 taxable tons. If the production is less than 42,000,000 taxable tons, the
         amount <br/>
<a id="pl.174.16"></a><var>174.16</var>of the distributions shall be reduced proportionately at the rate of two percent for
         each <br/>
<a id="pl.174.17"></a><var>174.17</var>1,000,000 tons, or part of 1,000,000 tons by which the production is less than 42,000,000
         <br/>
<a id="pl.174.18"></a><var>174.18</var>tons; or<br/>
<a id="pl.174.19"></a><var>174.19</var>(2)(i) for the distributions made pursuant to section 
         <statute_ref>298.28, subdivisions 4, paragraphs <br/>
<a id="pl.174.20"></a><var>174.20</var>(b)
         </statute_ref> and (c), and 6, paragraph (c), 31.2 percent of the amount distributed pursuant to
         this <br/>
<a id="pl.174.21"></a><var>174.21</var>section and section 
         <statute_ref>298.28</statute_ref>, with respect to 1983 production;<br/>
<a id="pl.174.22"></a><var>174.22</var>(ii) for the distributions made pursuant to section 
         <statute_ref>298.28, subdivision 5</statute_ref>, paragraphs (b) <br/>
<a id="pl.174.23"></a><var>174.23</var>and (d), 75 percent of the amount distributed pursuant to this section and section
         
         <statute_ref>298.28</statute_ref>, <br/>
<a id="pl.174.24"></a><var>174.24</var>with respect to 1983 production provided that the aid guarantee for distributions
         under <br/>
<a id="pl.174.25"></a><var>174.25</var>section 
         <statute_ref>298.28, subdivision 5</statute_ref>, paragraph (b), shall be reduced by five cents per taxable ton <br/>
<a id="pl.174.26"></a><var>174.26</var>for production years 2014 and thereafter.<br/>
<a id="pl.174.27"></a><var>174.27</var>(b) The distribution of the taconite production tax as provided in section 
         <statute_ref>298.28, <br/>
<a id="pl.174.28"></a><var>174.28</var>subdivision 2
         </statute_ref>, shall equal the following amount:<br/>
<a id="pl.174.29"></a><var>174.29</var>(1) if the production for the year prior to the distribution year is at least 42,000,000
         <br/>
<a id="pl.174.30"></a><var>174.30</var>taxable tons, the amount distributed pursuant to this section and section 
         <statute_ref>298.28</statute_ref> with respect <br/>
<a id="pl.174.31"></a><var>174.31</var>to 1999 production; or<br/>
<a id="pl.175.1"></a><var>175.1</var>(2) if the production for the year prior to the distribution year is less than 42,000,000
         <br/>
<a id="pl.175.2"></a><var>175.2</var>taxable tons, the amount distributed pursuant to this section and section 
         <statute_ref>298.28</statute_ref> with respect <br/>
<a id="pl.175.3"></a><var>175.3</var>to 1999 production, reduced proportionately at the rate of two percent for each 1,000,000
         <br/>
<a id="pl.175.4"></a><var>175.4</var>tons or part of 1,000,000 tons by which the production is less than 42,000,000 tons.<br/>
<a id="pl.175.5"></a><var>175.5</var>(c) The distribution of the taconite production tax under section 
<statute_ref>298.28</statute_ref>, subdivision 3, <br/>
<a id="pl.175.6"></a><var>175.6</var>paragraph (a), guaranteed under this section is equal to the amount distributed under
         section <br/>
<a id="pl.175.7"></a><var>175.7</var>298.28, with respect to 1983 production.<br/>
<a id="pl.175.8"></a><var>175.8</var><b>EFFECTIVE DATE.</b>This section is effective for distributions in 2018 and thereafter.<br/>
<br/>
<a id="bill.8.11.0"></a><a id="pl.175.9"></a><var>175.9</var>    Sec. 11. Minnesota Statutes 2016, section 298.28, subdivision 3, is amended to read:<br/>
<a id="pl.175.10"></a><var>175.10</var>    Subd. 3. <b>Cities; towns.</b> (a) 12.5 cents per taxable ton, less any amount distributed under <br/>
<a id="pl.175.11"></a><var>175.11</var>subdivision 8, and paragraph (b), must be allocated to the taconite municipal aid
         account <br/>
<a id="pl.175.12"></a><var>175.12</var>to be distributed as provided in section 
         <statute_ref>298.282</statute_ref>. The amount allocated to the taconite <br/>
<a id="pl.175.13"></a><var>175.13</var>municipal aid account must be annually increased in the same proportion as the increase
         in <br/>
<a id="pl.175.14"></a><var>175.14</var>the implicit price deflator as provided in section 
<statute_ref>298.24, subdivision 1</statute_ref>.<br/>
<a id="pl.175.15"></a><var>175.15</var>    (b) An amount must be allocated to towns or cities that is annually certified by the
         county <br/>
<a id="pl.175.16"></a><var>175.16</var>auditor of a county containing a taconite tax relief area as defined in section 
         <statute_ref>273.134, <br/>
<a id="pl.175.17"></a><var>175.17</var>paragraph (b)
         </statute_ref>, within which there is (1) an organized township if, as of January 2, 1982, <br/>
<a id="pl.175.18"></a><var>175.18</var>more than 75 percent of the assessed valuation of the township consists of iron ore
         or (2) a <br/>
<a id="pl.175.19"></a><var>175.19</var>city if, as of January 2, 1980, more than 75 percent of the assessed valuation of
         the city <br/>
<a id="pl.175.20"></a><var>175.20</var>consists of iron ore.<br/>
<a id="pl.175.21"></a><var>175.21</var>    (c) The amount allocated under paragraph (b) will be the portion of a township's or
         city's <br/>
<a id="pl.175.22"></a><var>175.22</var>certified levy equal to the proportion of (1) the difference between 50 percent of
         January <br/>
<a id="pl.175.23"></a><var>175.23</var>2, 1982, assessed value in the case of a township and 50 percent of the January 2,
         1980, <br/>
<a id="pl.175.24"></a><var>175.24</var>assessed value in the case of a city and its current assessed value to (2) the sum
         of its current <br/>
<a id="pl.175.25"></a><var>175.25</var>assessed value plus the difference determined in (1), provided that the amount distributed
         <br/>
<a id="pl.175.26"></a><var>175.26</var>shall not exceed $55 per capita in the case of a township or $75 per capita in the
         case of a <br/>
<a id="pl.175.27"></a><var>175.27</var>city. For purposes of this limitation, population will be determined according to
         the 1980 <br/>
<a id="pl.175.28"></a><var>175.28</var>decennial census conducted by the United States Bureau of the Census. If the current
         assessed <br/>
<a id="pl.175.29"></a><var>175.29</var>value of the township exceeds 50 percent of the township's January 2, 1982, assessed
         value, <br/>
<a id="pl.175.30"></a><var>175.30</var>or if the current assessed value of the city exceeds 50 percent of the city's January
         2, 1980, <br/>
<a id="pl.175.31"></a><var>175.31</var>assessed value, this paragraph shall not apply. For purposes of this paragraph, "assessed
         <br/>
<a id="pl.175.32"></a><var>175.32</var>value," when used in reference to years other than 1980 or 1982, means the appropriate
         net <br/>
<a id="pl.175.33"></a><var>175.33</var>tax capacities multiplied by 10.2.<br/>
<a id="pl.176.1"></a><var>176.1</var>    (d) In addition to other distributions under this subdivision, three cents per taxable
         ton <br/>
<a id="pl.176.2"></a><var>176.2</var>for distributions in 2009 must be allocated for distribution to towns that are entirely
         located <br/>
<a id="pl.176.3"></a><var>176.3</var>within the taconite tax relief area defined in section 
         <statute_ref>273.134</statute_ref>, paragraph (b). For distribution <br/>
<a id="pl.176.4"></a><var>176.4</var>in 2010 through 2014 and for distribution in 2018 and subsequent years, the three-cent
         <br/>
<a id="pl.176.5"></a><var>176.5</var>amount must be annually increased in the same proportion as the increase in the implicit
         <br/>
<a id="pl.176.6"></a><var>176.6</var>price deflator as provided in section 
         <statute_ref>298.24, subdivision 1</statute_ref>. The amount available under this <br/>
<a id="pl.176.7"></a><var>176.7</var>paragraph will be distributed to eligible towns on a per capita basis, provided that
         no town <br/>
<a id="pl.176.8"></a><var>176.8</var>may receive more than $50,000 in any year under this paragraph. Any amount of the
         <br/>
<a id="pl.176.9"></a><var>176.9</var>distribution that exceeds the $50,000 limitation for a town under this paragraph must
         be <br/>
<a id="pl.176.10"></a><var>176.10</var>redistributed on a per capita basis among the other eligible towns, to whose distributions
         <br/>
<a id="pl.176.11"></a><var>176.11</var>do not exceed $50,000.<br/>
<a id="pl.176.12"></a><var>176.12</var><b>EFFECTIVE DATE.</b>This section is effective for distributions in 2018 and thereafter.<br/>
<br/>
<a id="bill.8.12.0"></a><a id="pl.176.13"></a><var>176.13</var>    Sec. 12. <b>[459.36] NO SPENDING OF PUBLIC MONEY FOR CERTAIN RAIL </b><br/>
<a id="pl.176.14"></a><var>176.14</var><b>PROJECTS.</b><br/>
<a id="pl.176.15"></a><var>176.15</var>(a) Except as provided in paragraph (b), a governmental unit must not spend or use
         any <br/>
<a id="pl.176.16"></a><var>176.16</var>money for any costs related to studying the feasibility of, planning for, designing,
         <br/>
<a id="pl.176.17"></a><var>176.17</var>engineering, acquiring property or constructing facilities for or related to, or development
         <br/>
<a id="pl.176.18"></a><var>176.18</var>or operation of intercity or interregional passenger rail facilities or operations
         between the <br/>
<a id="pl.176.19"></a><var>176.19</var>city of Rochester, or locations in its metropolitan area, and any location in the
         metropolitan <br/>
<a id="pl.176.20"></a><var>176.20</var>area, as defined in section 473.121, subdivision 2.<br/>
<a id="pl.176.21"></a><var>176.21</var>(b) The restrictions under this section do not apply to:<br/>
<a id="pl.176.22"></a><var>176.22</var>(1) funds the governmental unit obtains from contributions, grants, or other voluntary
         <br/>
<a id="pl.176.23"></a><var>176.23</var>payments made by nongovernmental entities from private sources; and<br/>
<a id="pl.176.24"></a><var>176.24</var>(2) expenditures for costs of public infrastructure, including public utilities, parking
         <br/>
<a id="pl.176.25"></a><var>176.25</var>facilities, a multimode transit hub, or similar projects located within the area of
         the <br/>
<a id="pl.176.26"></a><var>176.26</var>development district, as defined under section 469.40, and reflected in the development
         <br/>
<a id="pl.176.27"></a><var>176.27</var>plan adopted before the enactment of this section, that are intended to serve, and
         that are <br/>
<a id="pl.176.28"></a><var>176.28</var>made following the completed construction and commencement of operation of privately
         <br/>
<a id="pl.176.29"></a><var>176.29</var>financed and operated intercity or interregional passenger rail facilities.<br/>
<a id="pl.176.30"></a><var>176.30</var>(c) For purposes of this section, "governmental unit" means any of the following,
         located <br/>
<a id="pl.176.31"></a><var>176.31</var>in development regions 10 and 11, as designated under section 462.385, subdivision
         1:<br/>
<a id="pl.176.32"></a><var>176.32</var>(1) statutory or home rule charter city;<br/>
<a id="pl.176.33"></a><var>176.33</var>(2) county;<br/>
<a id="pl.177.1"></a><var>177.1</var>(3) special taxing district, as defined in section 275.066;<br/>
<a id="pl.177.2"></a><var>177.2</var>(4) metropolitan planning organization; or<br/>
<a id="pl.177.3"></a><var>177.3</var>(5) destination medical center entity, which includes the Destination Medical Center
         <br/>
<a id="pl.177.4"></a><var>177.4</var>Corporation and agency, as those terms are defined in section 469.40, and any successor
         or <br/>
<a id="pl.177.5"></a><var>177.5</var>related entity.<br/>
<a id="pl.177.6"></a><var>177.6</var><b>EFFECTIVE DATE.</b>This section is effective the day following final enactment without <br/>
<a id="pl.177.7"></a><var>177.7</var>local approval under Minnesota Statutes, section 645.023, subdivision 1, clause (c).<br/>
<br/>
<a id="bill.8.13.0"></a><a id="pl.177.8"></a><var>177.8</var>    Sec. 13. Minnesota Statutes 2016, section 462.353, subdivision 4, is amended to read:<br/>
<a id="pl.177.9"></a><var>177.9</var>    Subd. 4. <b>Fees.</b> (a) A municipality may prescribe fees sufficient to defray the costs incurred <br/>
<a id="pl.177.10"></a><var>177.10</var>by it in reviewing, investigating, and administering an application for an amendment
         to an <br/>
<a id="pl.177.11"></a><var>177.11</var>official control established pursuant to sections 
         <statute_ref>462.351</statute_ref> to 
         <statute_ref>462.364</statute_ref> or an application for a <br/>
<a id="pl.177.12"></a><var>177.12</var>permit or other approval required under an official control established pursuant to
         those <br/>
<a id="pl.177.13"></a><var>177.13</var>sections. Except as provided in subdivision 4a, fees as prescribed must be by ordinance.
         <br/>
<a id="pl.177.14"></a><var>177.14</var>Fees must be fair, reasonable, and proportionate and have a nexus to the actual cost
         of the <br/>
<a id="pl.177.15"></a><var>177.15</var>service for which the fee is imposed.<br/>
<a id="pl.177.16"></a><var>177.16</var>(b) A municipality must adopt management and accounting procedures to ensure that
         <br/>
<a id="pl.177.17"></a><var>177.17</var>fees are maintained and used only for the purpose for which they are collected. Upon
         request, <br/>
<a id="pl.177.18"></a><var>177.18</var>a municipality must explain the basis of its fees.<br/>
<a id="pl.177.19"></a><var>177.19</var>(c) Except as provided in this paragraph, a fee ordinance or amendment to a fee ordinance
         <br/>
<a id="pl.177.20"></a><var>177.20</var>is effective January 1 after its adoption. A municipality may adopt a fee ordinance
         or an <br/>
<a id="pl.177.21"></a><var>177.21</var>amendment to a fee ordinance with an effective date other than the next January 1,
         but the <br/>
<a id="pl.177.22"></a><var>177.22</var>ordinance or amendment does not apply if an application for final approval has been
         <br/>
<a id="pl.177.23"></a><var>177.23</var>submitted to the municipality.<br/>
<a id="pl.177.24"></a><var>177.24</var>(d) If a dispute arises over a specific fee imposed by a municipality related to a
         specific <br/>
<a id="pl.177.25"></a><var>177.25</var>application, the person aggrieved by the fee may appeal under section 
         <statute_ref>462.361</statute_ref>, provided <br/>
<a id="pl.177.26"></a><var>177.26</var>that the appeal must be brought within 60 days after approval of an application under
         this <br/>
<a id="pl.177.27"></a><var>177.27</var>section and deposit of the fee into escrow. A municipality must not condition the
         approval <br/>
<a id="pl.177.28"></a><var>177.28</var>of any proposed subdivision or development on an agreement to waive the right to challenge
         <br/>
<a id="pl.177.29"></a><var>177.29</var>the validity of a fee. An approved application may proceed as if the fee had been
         paid, <br/>
<a id="pl.177.30"></a><var>177.30</var>pending a decision on the appeal. This paragraph must not be construed to preclude
         the <br/>
<a id="pl.177.31"></a><var>177.31</var>municipality from conditioning approval of any proposed subdivision or development
         on <br/>
<a id="pl.177.32"></a><var>177.32</var>an agreement to waive a challenge to the cost associated with municipally installed
         <br/>
<a id="pl.177.33"></a><var>177.33</var>improvements of the type described in section 
         <statute_ref>429.021</statute_ref>.<br/>
<a id="pl.178.1"></a><var>178.1</var>(e) A municipality may not impose a fee to review or investigate a use if the use
         is <br/>
<a id="pl.178.2"></a><var>178.2</var>allowed without any permit, approval, or amendment to an official control. This limitation
         <br/>
<a id="pl.178.3"></a><var>178.3</var>does not apply to a fee for a review or investigation:<br/>
<a id="pl.178.4"></a><var>178.4</var>(1) of compliance with health and safety requirements; or<br/>
<a id="pl.178.5"></a><var>178.5</var>(2) that results in finding a violation, unless the finding is overturned on appeal
         or a <br/>
<a id="pl.178.6"></a><var>178.6</var>penalty, fine, or other charge is imposed for the violation.<br/>
<a id="pl.178.7"></a><var>178.7</var><b>EFFECTIVE DATE.</b>This section is effective August 1, 2017, and applies to fees  <br/>
<a id="pl.178.8"></a><var>178.8</var>imposed on or after that date.<br/>
<br/>
<a id="bill.8.14.0"></a><a id="pl.178.9"></a><var>178.9</var>    Sec. 14. <b>[473.1467] NO SPENDING FOR CERTAIN RAIL PROJECTS.</b><br/>
<a id="pl.178.10"></a><var>178.10</var>(a) Except as provided in paragraph (b), the council must not spend or use any money
         <br/>
<a id="pl.178.11"></a><var>178.11</var>for any costs related to studying the feasibility of, planning for, designing, engineering,
         <br/>
<a id="pl.178.12"></a><var>178.12</var>acquiring property or constructing facilities for or related to, or development or
         operation <br/>
<a id="pl.178.13"></a><var>178.13</var>of intercity or interregional passenger rail facilities or operations between the
         city of <br/>
<a id="pl.178.14"></a><var>178.14</var>Rochester or locations in its metropolitan area and any location in the metropolitan
         area, as <br/>
<a id="pl.178.15"></a><var>178.15</var>defined in section 473.121, subdivision 2.<br/>
<a id="pl.178.16"></a><var>178.16</var>(b) The restrictions under this section do not apply to funds the council obtains
         from <br/>
<a id="pl.178.17"></a><var>178.17</var>contributions, grants, or other voluntary payments made by nongovernmental entities
         from <br/>
<a id="pl.178.18"></a><var>178.18</var>private sources.<br/>
<a id="pl.178.19"></a><var>178.19</var><b>EFFECTIVE DATE; APPLICATION.</b>This section is effective the day following <br/>
<a id="pl.178.20"></a><var>178.20</var>final enactment and applies in the counties of Anoka, Carver, Dakota, Hennepin, Ramsey,
         <br/>
<a id="pl.178.21"></a><var>178.21</var>Scott, and Washington.<br/>
<br/>
<a id="bill.8.15.0"></a><a id="pl.178.22"></a><var>178.22</var>    Sec. 15. <b>CLARIFYING AUTHORITY TO USE PREVIOUSLY DISTRIBUTED </b><br/>
<a id="pl.178.23"></a><var>178.23</var><b>TACONITE TAX PROCEEDS.</b><br/>
<a id="pl.178.24"></a><var>178.24</var>The commissioner of Iron Range resources and rehabilitation may use unspent amounts
         <br/>
<a id="pl.178.25"></a><var>178.25</var>allocated under Minnesota Statutes 2014, section 298.2961, subdivision 5, clause (19),
         <br/>
<a id="pl.178.26"></a><var>178.26</var>remaining as of May 22, 2016, for the specific purposes identified in that section.
         <br/>
<a id="pl.178.27"></a><var>178.27</var>Notwithstanding Minnesota Statutes, section 298.28, subdivision 11, paragraph (a),
         or any <br/>
<a id="pl.178.28"></a><var>178.28</var>other law to the contrary, interest accrued on this amount shall also be distributed
         to the <br/>
<a id="pl.178.29"></a><var>178.29</var>recipient. Amounts under this section are available until expended and do not lapse
         or cancel <br/>
<a id="pl.178.30"></a><var>178.30</var>under Minnesota Statutes, section 16A.28.<br/>
<a id="pl.178.31"></a><var>178.31</var><b>EFFECTIVE DATE.</b>This section is effective retroactively from May 22, 2016.<br/>
<br/>
<a id="bill.8.16.0"></a><a id="pl.179.1"></a><var>179.1</var>    Sec. 16. <b>CITY OF TAYLORS FALLS; DEVELOPMENT ZONE.</b><br/>
<a id="pl.179.2"></a><var>179.2</var>    Subdivision 1. <b>Authorization.</b> The governing body of the city of Taylors Falls may <br/>
<a id="pl.179.3"></a><var>179.3</var>designate all or any part of the city as a development zone under Minnesota Statutes,
         section <br/>
<a id="pl.179.4"></a><var>179.4</var>469.1731.<br/>
<a id="pl.179.5"></a><var>179.5</var>    Subd. 2. <b>Application of general law.</b> (a) Minnesota Statutes, sections 469.1731 to <br/>
<a id="pl.179.6"></a><var>179.6</var>469.1735, apply to the development zones designated under this section. The governing
         <br/>
<a id="pl.179.7"></a><var>179.7</var>body of the city may exercise the powers granted under Minnesota Statutes, sections
         469.1731 <br/>
<a id="pl.179.8"></a><var>179.8</var>to 469.1735, including powers that apply outside of the zones.<br/>
<a id="pl.179.9"></a><var>179.9</var>(b) The allocation under subdivision 3 for purposes of Minnesota Statutes, section
         <br/>
<a id="pl.179.10"></a><var>179.10</var>469.1735, subdivision 2, is appropriated to the commissioner of revenue.<br/>
<a id="pl.179.11"></a><var>179.11</var>    Subd. 3. <b>Allocation of state tax reductions.</b> (a) The cumulative total amount of the <br/>
<a id="pl.179.12"></a><var>179.12</var>state portion of the tax reductions for all years of the program under Minnesota Statutes,
         <br/>
<a id="pl.179.13"></a><var>179.13</var>sections 469.1731 to 469.1735, for the city of Taylors Falls, is limited to $100,000.
         To <br/>
<a id="pl.179.14"></a><var>179.14</var>provide the authority under this section, the amount of the allocation for border
         cities under <br/>
<a id="pl.179.15"></a><var>179.15</var>Minnesota Statutes, section 469.169, in this act is reduced by $100,000.<br/>
<a id="pl.179.16"></a><var>179.16</var>(b) This allocation may be used for tax reductions provided in Minnesota Statutes,
         section <br/>
<a id="pl.179.17"></a><var>179.17</var>469.1732 or 469.1734, or for reimbursements under Minnesota Statutes, section 469.1735,
         <br/>
<a id="pl.179.18"></a><var>179.18</var>subdivision 3, but only if the governing body of the city of Taylors Falls determines
         that <br/>
<a id="pl.179.19"></a><var>179.19</var>the tax reduction or offset is necessary to enable a business to expand within the
         city or to <br/>
<a id="pl.179.20"></a><var>179.20</var>attract a business to the city.<br/>
<a id="pl.179.21"></a><var>179.21</var>(c) The commissioner of revenue may waive the limit under this subdivision using the
         <br/>
<a id="pl.179.22"></a><var>179.22</var>same rules and standards provided in Minnesota Statutes, section 469.169, subdivision
         12, <br/>
<a id="pl.179.23"></a><var>179.23</var>paragraph (b).<br/>
<a id="pl.179.24"></a><var>179.24</var><b>EFFECTIVE DATE.</b>This section is effective July 1, 2017, and does not require local <br/>
<a id="pl.179.25"></a><var>179.25</var>approval pursuant to Minnesota Statutes, section 645.023, subdivision 1, paragraph
         (a).<br/>
<br/>
<a id="bill.8.17.0"></a><a id="pl.179.26"></a><var>179.26</var>    Sec. 17. <b> REPEALER.</b><br/>
<a id="pl.179.27"></a><var>179.27</var>(a) Minnesota Statutes 2016, sections 10A.322, subdivision 4; 13.4967, subdivision 2;
         <br/>
<a id="pl.179.28"></a><var>179.28</var>and 290.06, subdivision 23, and Minnesota Rules, part 4503.1400, subpart 4, are repealed.<br/>
<a id="pl.179.29"></a><var>179.29</var>(b) Minnesota Statutes 2016, section 477A.20, is repealed.<br/>
<a id="pl.179.30"></a><var>179.30</var><b>EFFECTIVE DATE.</b>Paragraph (a) is effective for contributions made after June 30, <br/>
<a id="pl.179.31"></a><var>179.31</var>2017, and refund claims filed after June 30, 2017. Paragraph (b) is effective the
         day following <br/>
<a id="pl.179.32"></a><var>179.32</var>final enactment.<br/>